law: Electricity Act, 2003
  39. State
  
  Transmission Utility and functions.-
  1.     
  
    The
  
  State Government may notify the Board or a Government company as the State
  
  Transmission Utility:
  Provided that the
  
  State Transmission utility shall not engage in the business of trading in
  
  electricity:
  Provided further that
  
  the State Government may transfer, and vest any property, interest in property,
  
  rights and liabilities connected with, and personnel involved in transmission
  
  of electricity, of such State Transmission Utility, to a company or companies
  
  to be incorporated under the Companies Act, 1956 to function as 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.
  2.     
  
    The
  
  functions of the State Transmission Utility shall be--
  a.      to undertake
  
  transmission of electricity through intra-State transmission system;
  b.     to discharge all
  
  functions of planning and co-ordination relating to intra-State transmission
  
  system with--
                       
  
   i.        
  
    Central
  
  Transmission Utility;
                      
  
   ii.        
  
    State
  
  Governments;
                     
  
   iii.        
  
    generating
  
  companies;
                     
  
   iv.        
  
    Regional
  
  Power Committees;
                      
  
   v.        
  
    Authority;
                     
  
   vi.        
  
    licensees;
                    
  
   vii.        
  
    any
  
  other person notified by the State Government in this behalf;
  a.     
  
  
  b.     
  
  
  c.      to ensure development
  
  of an efficient, co-ordinated and economical system of intra-State transmission
  
  lines for smooth flow of electricity from a generating station 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 State 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 State Commission:
  Provided also that
  
  the manner of payment and utilisation of the surcharge shall be specified by
  
  the State 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.