Indian public utility laws..important for law students

1. Public Utility Laws on Railways,
Electricity, Fire Extinguishing
Services and Gas and Petroleum
Shivani Sharma
LL.M. II Semester
Sardar Patel Subharti Institute of
Law

2. INTRODUCTION
• A public utility is a business or service, which
may be publicly or privately owned;
engaged in supplying the public generally with
some commodity or service, such as electricity,
gas, water, transportation, or telephone or
telegraph service.
• Murray Rothbard-“The very term “public utility,”
furthermore, is an absurd one. Any designation
of a few industries as “public utilities” is
completely arbitrary and unjustified.”

3. STATE MONOPOLY IN UTILITY SERVICES
1. “Effective regulation” by direct government
ownership and management.
2. The “need for co-ordination”
3. Substitution of ‘profit motive’ by ‘service motive’ is
practicable only when these are owned and managed
by the government.
4. In a planned economy, the key services which are
clothed with public interest should necessarily be in
Public or State sector.
The Industrial Policy Resolution of 1956 declares
that the public utility service will, as far as possible, be
under State ownership and management.

4. CHARACTERISTICS
Supply of
essential
goods and
services
Local in
character
Organized as
monopolies
Strict
regulation
Large
investment
Inelastic
demand
Non-
transferability
of demand
Lower risk

6. INDIAN RAILWAYS
• Indian Railways is India's national railway system
operated by the Ministry of Railways. (Union List)
• It manages the Fourth-largest railway network of
121,407 kilometers
• It is divided into 17 zones, headed by General
Managers who report to the Railway Board
• Indian Railways is headed by a seven-
member Railway Board whose chairman reports to
the Ministry of Railways.

8. • The first legislation to govern the Railways was
the Indian Railways Act of 1890 and the Act
was repealed by The Railways Act 1989:
•The constitution of new railway zones,
•Appointment of GMs as heads of these railway administrations.
•Power has been given to the central government to fix the rates
•Statutory recognition of the railway receipt as a negotiable
instrument.
•The offenses included in the Act have been rationalized and a
few offenses included.
•All the amendments have been consolidated, have been
rearranged and rationalized in 16 chapters.

9. • Chapter II A has been in inserted in 2005 and
provides institutional framework for Railway Land
Development Authority
• A new section has been added in Chapter III which
makes it obligatory on Chief Commission of Railway
safety to prepare for an annual report before the
Parliament.
• The procedure for payment of compensation for
damage caused in the course of construction or
maintenance
•
• In order to enable the Railways to acquire land for
Infrastructure projects quickly chapter IV A has been
inserted in the year 2008

10. • The Central Government is empowered to fix
standard rates for the carriage
of passengers and goods
• RRT (Railways Rail Tribunal) has been
empowered not only to fix a rate or a charge as
it considers reasonable but also direct refund on
an amount in excess of rates fixed by the
Tribunal
• The word “dependant” has been redefined so
as to include the parents in the case of a minor
deceased passenger

12. INDIAN ELECTRICITY SECTOR
• India is the world's third largest producer and fourth
largest consumer of electricity.
• The first demonstration of an electric light in Calcutta
was conducted on 24 July 1879 by P.W. Fleury & Co.
• India's electricity sector is dominated by fossil fuels,
and in particular coal, which in 2016 produced about two
thirds of all electricity
• Renewable power plants constituted 32.2% of total
installed capacity

13. • Indian Constitution adds electricity in
Concurrent list, which comes under both union
and state level governments, except for nuclear
power which is under the control of Union
Government
• The Indian Electricity Act, 1910 was the first
legislation regarding the regulation of the
Electricity sector in India.
• After the act of 1910, came the act The
Electricity (Supply) Act, 1948

14. • The Electricity Act, 2003 repealed the previous Acts:
•mandates that Regulatory Commissions shall regulate tariff and issue of
licenses
•State Electricity Boards will no longer exist in the existing form and will be
restructured into separate generation, transmission and distribution entities.
•mandates licensee-free thermal generation,
•non-discriminatory open access of the transmission system and;
•gradual implementation of open access in the distribution system which
will pave way for creation of power market in India.
•Distributing licensees would be free to undertake generation, and
generating companies would be free to take up distribution.

15. • The State Governments are required to unbundle
the SEBs.
• Setting up of the State Electricity Regulatory
Commission (SERCs) made mandatory.
• An Appellate Tribunal to hear appeals against the
decision of the CERC and SERCs.
• The SERCs are required to permit open access in
distribution in phases with surcharge for current
level of cross subsidy to be gradually phased out
along with cross subsidies and obligation to supply.
• Metering of electricity supplied, made mandatory.

17. INDIAN OIL AND GAS INDUSTRY
• The oil and gas industry in India dates back to 1889 when the first
oil deposits in the country were discovered near the town
of Digboi in the state of Assam
• As on 31 March 2015, India had estimated crude oil reserves of
763.48 million tonnes and natural gas reserves of 1488.49 billion
cubic meters.
• Gas is an important source for electricity generation in India with
installed capacity of 25,057.13 MW, accounting for 7.9% of the total
installed capacity.
• Diesel is a minor source for electricity generation in India with
installed capacity of 927.89 MW, accounting for a mere 0.3% of total
installed capacity.

18. Oil & Gas Sector
Upstream
searching for and the
recovery and
production of crude oil
and natural gas
Midstream
processes, stores,
markets and transports
commodities
Downstream
includes oil refineries,
petrochemical plants,
petroleum product
distribution, retail
outlets and
natural gas distributio
n companies

19. • The Petroleum Act, 1934:
deals with import, transport, storage, production,
refining, and blending of petroleum. The Act is one
of the oldest acts in the oil and gas sector.
• The Petroleum Minerals Pipelines (Acquisition of
Right of users in Land) Act, 1962:
provide for the acquisition of right of user in land for
laying pipelines for the transport of petroleum and
minerals, Publication of notification for acquisition
• Petroleum and Natural Gas Rules, 1959:
framework for grant of exploration licenses and
mining leases

20. • Oilfields (Regulation and Development) Act,
1948:
enabling statute for licensing and leasing of
petroleum and gas blocks by the appropriate
government
• Petroleum and Natural Gas Regulatory Board
Act, 2006:
to regulate the refining, processing, storage,
transportation, distribution, marketing and sale
of petroleum, petroleum products and
natural gas, excluding production of
crude oil and natural gas

23. • On an average, in India, every year, about
25,000 persons die due to fires and related
causes.
• Female accounts for about 66% of those killed
in fire accidents.
• According to one estimate the major losses
reported by the Indian Insurance Companies
in the year 2007-2008 indicate, that about 45%
of the claims are due to fire losses

24. • The Ministry of Home Affairs (MHA) also known as
Home Ministry often provides suggestions to states
and union territories on fire prevention, fire
protection and fire legislation.
• Fire and Security Association of India (FSAI)
• National Disaster Management Authority, 1999
• Maharashtra Fire Prevention and Life Safety
Measures Act 2006
• Delhi Fire Prevention and Fire Safety Act, 1986
• Uttar Pradesh Fire Services Act of 1944
• Etc.