National Electricity Policy and Plan
Section 3 of the Electricity Act, 2003 deals with national Electricity Policy and Plan. The Central Government shall, from time to time, prepare the National Electricity Policy and tariff policy, in consultation with the State Governments and the Authority for development of the power system based on optimal utilisation of resources such as coal, natural gas, nuclear substances or mate The Act came into force on 10 Jun 2003.
(1) The Central Government shall, from time to time, prepare the National Electricity Policy and tariff policy, in consultation with the State Governments and the Authority for development of the power system based on optimal utilisation of resources such as coal, natural gas, nuclear substances or materials, hydro and renewable sources of energy.
(2) The Central Government shall publish National Electricity Policy and tariff policy from time to time.
(3) The Central Government may, from time to time, in consultation with the State Governments and the Authority, review or revise, the National Electricity Policy and tariff policy referred to in sub-section (1).
(4) The Authority shall prepare a National Electricity Plan in accordance with the National Electricity Policy and notify such plan once in five years:
Provided that the Authority while preparing the National Electricity Plan shall publish the draft National Electricity Plan and invite suggestions and objections thereon from licensees, generating companies and the public within such time as may be prescribed:
Provided further that the Authority shall-
(a) notify the plan after obtaining the approval of the Central Government;
(b) revise the plan incorporating therein the directions, if any, given by the Central Government while granting approval under clause (a).
(5) The Authority may review or revise the National Electricity Plan in accordance with the National Electricity Policy.
Section 3, The Electricity Act, 2003 (Act 36 of 2003).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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J. K. Tyre & Industries LTD vs Rajasthan Electricity Regulatory Commn
Court's Decision & Legal Precedent
The Rajasthan Electricity Regulatory Commission has statutory power under Section 86(1)(e) read with Section 181 of the Electricity Act 2003 to impose renewable energy purchase obligations on captive power plants and open access consumers located in the area of distribution licensee, as the term 'total consumption in the area of distribution licensee' includes consumption from all sources within that geographical area. Such obligations, being designed to achieve constitutional mandates under Articles 21, 48A, and 51A(g) of the Constitution and to promote renewable energy as a matter of public policy, do not violate the de-licensing principle of the Act nor do they infringe fundamental rights under Articles 14 or 19(1)(g) of the Constitution. The surcharge imposed for non-compliance is a valid regulatory measure under Section 86(1)(g) and Sections 142, 147 of the Act, representing a compensatory mechanism based on the polluter-pays principle, not an unauthorized tax under Article 265.
On this section: Authority for Central Government to frame National Electricity Policy 2005 providing framework for renewable energy promotion
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Made under this section, and citing it
2 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
Another 11 instruments name this provision in its title or its text without being made under it.
- The Electricity (Rights of Consumers) Amendment Rules, 2022Rule 2022
- Joint Electricity Regulatory Commission for the State of Goa and Union territories (Constitution and Manner of Application of Fund, Form and Time for Preparation of Budget) Rules, 2016Rule 2016
- MoP Notification dated 17.03.2016Notification 2016
- Qualifications, Powers and Functions of Chief Electrical Inspector and Electrical Inspectors (Amendment) Rules, 2016Rule 2016
- Uttar Pradesh Electricity Regulatory Commission (DEMAND SIDE MANAGEMENT) Regulations 2014Regulation 2014
- Amendment of Tariff Policy-Resolutions, 22.01.2011Regulation 2011
- The Himachal Pradesh Electricity Grid Code, 2008Regulation 2008
- Central Electricity Authority (Furnishing of Statistics, Returns & Information) Regulations, 2007Regulation 2007
- UP Electricity Regulatory Commission (General Conditions of Distribution Licence) RegulationRegulation 2004
- Electricity Act, 2003Rule 2003
- THE INDIAN ELECTRICITY RULES, 1956Rule 1956
Questions about Section 3
What have the courts held on Section 3 of the Electricity Act?
J. K. Tyre & Industries LTD vs Rajasthan Electricity Regulatory Commn (13 May 2015) is the leading judgment on this section among those set out below: Authority for Central Government to frame National Electricity Policy 2005 providing framework for renewable energy promotion.
How do I find court cases under Section 3 of the Electricity Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Electricity Act 2003 3, section 3 Electricity Act 2003, section 3 of the Electricity Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with J. K. Tyre & Industries LTD vs Rajasthan Electricity Regulatory Commn (13 May 2015).
What should I read with Section 3 of the Electricity Act, and has it changed?
5 other provisions in this corpus refer back to it. The rules and notifications made under it are where it actually bites, and there are 2: most recently JERC Notification dated 21.11.2016 (2016), then the Joint Electricity Regulatory Commission (Distribution Code) (First Amendment), Regulations, 2016. (2016).
When did Section 3 of the Electricity Act come into force?
Section 3 of the Electricity Act, cited as Electricity Act 2003 3, came into force on 10 Jun 2003, having been enacted on 26 May 2003. It is in force as at the date shown on this page.
Other sections of this Act
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 17 Oct 2026. This page is not a substitute for legal advice.