law: Electricity Act, 2003
  38. Central
  
  Transmission Utility and functions.-
  1.     
  
    The
  
  Central Government may notify any Government company as the Central
  
  Transmission Utility:
  Provided that the
  
  Central Transmission Utility shall not engage in the business of generation of
  
  electricity or trading in electricity:
  Provided further that
  
  the Central Government may transfer, and vest any property, interest in
  
  property, rights and liabilities connected with, and personnel involved in
  
  transmission of electricity of such Central Transmission Utility, to a company
  
  or companies to be incorporated under the Companies Act, 1956 (1 of 1956) to
  
  function as a transmission licensee, through a transfer scheme to be effected
  
  in the manner specified under Part XIII and such company or companies shall be
  
  deemed to be transmission licensees under this Act.
  1.     
  
  
  2.     
  
    The
  
  functions of the Central Transmission Utility shall be--
  a.      to undertake
  
  transmission of electricity through inter-State transmission system;
  b.     to discharge all
  
  functions of planning and co-ordination relating to inter-State transmission
  
  system with--
                       
  
   i.        
  
    State
  
  Transmission Utilities;
                      
  
   ii.        
  
    Central
  
  Government;
                     
  
   iii.        
  
    State
  
  Governments;
                     
  
   iv.        
  
    generating
  
  companies;
                      
  
   v.        
  
    Regional
  
  Power Committees;
                     
  
   vi.        
  
    Authority;
                    
  
   vii.        
  
    licensees;
                   
  
   viii.        
  
    any
  
  other person notified by the Central Government in this behalf;
  a.     
  
  
  b.     
  
  
  c.      to ensure development
  
  of an efficient, co-ordinated and economical system of inter-State transmission
  
  lines for smooth flow of electricity from generating stations to the load
  
  centres;
  d.     to provide
  
  non-discriminatory open access to its transmission system for use by--
                       
  
   i.        
  
    any
  
  licensee or generating company on payment of the transmission charges; or
                      
  
   ii.        
  
    any
  
  consumer as and when such open access is Provided by the State Commission under
  
  sub-section (2) of section 42, on payment of the transmission charges and a
  
  surcharge thereon, as may be specified by the Central Commission:
  Provided that such
  
  surcharge shall be utilised for the purpose of meeting the requirement of
  
  current level cross-subsidy:
  Provided further that
  
  such surcharge and cross subsidies shall be progressively reduced in the manner
  
  as may be specified by the Central Commission:
  Provided also that
  
  the manner of payment and utilisation of the surcharge shall be specified by
  
  the Central Commission:
  Provided also that
  
  such surcharge shall not be leviable in case open access is Provided to a
  
  person who has established a captive generating plant for carrying the
  
  electricity to the destination of his own use.