86540
Lawyers Network
103860
Users
630
Cities Serving
114
Law Schools Network
59824
ENERGY CONSERVATION ACT, 2001
52 of 2001
September 29, 2001
An Act to provide for efficient use of energy and its conservation and for matters connected therewith or incidental there to Be it enacted by Parliament in the Fifty-second Year of the Republic of India as follows:-
SECTION 01: SHORT TITLE, EXTENT AND COMMENCEMENT.
(1) This Act may be called the Energy Conservation Act, 2001.
(2) It extends to the whole of India except the State of Jammu and Kashmir.
(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint; and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.
SECTION 02: DEFINITIONS.
In this Act, unless the context otherwise requires,—
(a) "accredited energy auditor" means an auditor possessing qualifications specified under clause (p) of sub-section (2) of Section 13-;
(b) "Appellate Tribunal" means the Appellate Tribunal for Energy Conservation established under Section 30-;
(c) "building" means any structure or erection or part of a structure or erection, after the rules relating to energy conservation building codes have been notified under clause (a) of Section 15-or clause (l) of sub-section (2) of Section 56-, which is having a connected load of 500 kw or contract demand of 600 kw and above and is intended to be used for commercial purposes;
(d) "Bureau" means the Bureau of Energy Efficiency established under sub- section (1)
of Section 3-;
(e) "Chairperson" means the Chairperson of the Governing Council;
(f) "designated agency" means any agency designated under clause (a) of Section 15-;
(g) "designated consumer" means any consumer specified under clause (e) of Section 14-;
(h) "energy" means any form of energy derived from fossil fuels, nuclear substances or.
materials, hydro-electricity and includes electrical energy or electricity generated from
renewable sources of energy or bio-mass connected to the grid;
(i) "energy audit" means the verification, monitoring and analysis of use of energy including submission of technical report containing recommendations for improving energy efficiency with cost benefit analysis and an action plan to reduce energy consumption;
(j) "energy conservation building codes" means the norms and standards of energy
consumption expressed in terms of per square metre of the area wherein energy is used and includes the location of the building;
(k) "energy consumption standards" means the norms for process and energy consumption standards specified under clause (a) of Section 14-;
(l) "Energy Management Centre" means the Energy Management Centre set up under the
Resolution of the Government of India in the erstwhile Ministry of Energy, Department of Power No. 7(2)/87- EP(Vol. IV), dated the 5th July, 1989 and registered under the Societies Registration Act, 1860-(21 of 1860);
(m) "energy manager" means any individual possessing the qualifications prescribed under clause (m) of Section 14-;
(n) "Governing Council" means the Governing Council referred to in Section 4-;
(o) "member" means the member of the Governing Council and includes the Chairperson;
(p) "notification" means a notification in the Gazette of India or, as the case may be, the
Official Gazette of a State;
(q) "prescribed" means prescribed by rules made under this Act;
(r) "regulations" means regulations made by the Bureau under this Act;
(s) "Schedule" means the Schedule to this Act;
(t) "State Commission" means the State Electricity Regulatory Commission established under sub-section (1) of Section 17-of the Electricity Regulatory Commissions Act, 1998-(14 of 1998);
(u) words and expressions used and not defined in this Act but defined in the Indian Electricity Act, 1910-(9 of 1910) or the Electricity (Supply) Act, 1948-(54 of 1948) or the Electricity Regulatory Commissions Act, 1998-(14 of 1998) shall have the meanings respectively assigned to them in those Acts.
SECTION 03: ESTABLISHMENT AND INCORPORATION OF BUREAU OF ENERGY EFFICIENCY.
(1) With effect from such date as the Central Government may, by notification, appoint, there shall be established, for the purposes of this Act, a Bureau to be called the Bureau of Energy Efficiency.
(2) The Bureau shall be a body corporate by the name aforesaid having perpetual succession and a common seal, with power subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall, by the said name, sue or be sued.
(3) The head office of the Bureau shall be at Delhi.
(4) The Bureau may establish offices at other places in India.
SECTION 04: MANAGEMENT OF BUREAU.
(1) The general superintendence, direction and management of the affairs of the Bureau shall vest in the Governing Council which shall consist of not less than twenty, but not exceeding twenty-six, members to be appointed by the Central Government.
(2) The Governing Council shall consist of the following members, namely:—
(3) The Governor Council may exercise all power and do all acts and things which may be exercise or done by the Bureau
(4) Every member referred to in clause
(a) the Minister in charge of the Ministry or ex officio Chairperson; Department of the Central Government dealing
with the Power
(b) the Secretary to the Government of India, in ex officio member;
charge of the Ministry or Department of the
Central Government dealing with the Power
(c) the Secretary to the Government of India, in ex officio member;
charge of the ministry or Department of the Central
Government dealing with the Petroleum
and Natural Gas
(d) the Secretary to the Government of India, in ex officio member;
charge of the Ministry or Department of the
Central Government dealing with the Coal
(e) the Secretary to the Government of India, in ex officio member;
charge of the Ministry or Department of the
Central Government dealing with the Non-
Conventional Energy Sources
(f) the Secretary to the Government of India, in ex officio member;
charge of the Ministry or Department of the
Central Government dealing with the Atomic
Energy
(g) the Secretary to the Government of India, in ex officio member;
charge of the Ministry or Department of the
Central Government dealing with the Consumer
Affairs
(h) Chairman of the Central Electricity Authority ex officio member;
established under the Electricity (Supply) Act,
1948 (54 of 1948)
(i) Director-General of the Central Power Research ex officio member;
Institute registered under the Karnataka Societies
Act, 1960 (Karnataka Act 17 of 1960)
(j) Executive Director of the Petroleum Conservation ex officio member;
Research Association, a society registered under
the Societies Registration Act, 1860 (21 of 1860)
(k) Chairman-cum-Managing Director of the Central ex officio member;
Mine Planning and Design Institute Limited, a
company incorporated under the Companies Act,
1956 (1 of 1956)
(1) Director-General of the Bureau of Indian ex officio member;
Standards established under the Bureau of Indian
Management of Bureau.
(o), (p) and (q) of subsection (2) shall hold office for
a term of three years from the date on which he enters upon his office.
(5) The fee and allowances to be paid to the members referred to in clauses (o), (p) and (q) of sub-section (2) and the manner of filling up of vacancies and the procedure to be followed in the discharge of their functions shall be such as may be prescribed.
Standards established under the Bureau of Indian Standards Act, 1986 (63 of 1986)
(m) Director-General of the National Test House, ex officio member;
Department of Supply, Ministry of Commerce and
Industry, Kolkata
(n) Managing Director of the Indian Renewable ex officio member;
Energy Development Agency Limited, a
company incorporated under the Companies Act,
1956 (1 of 1956)
(o) one member each from the five power regions members;
representing the States of the region to be
appointed by the Central Government
(p) such number of persons, not exceeding four as members;
may be prescribed, to be appointed by the Central
Government as members from amongst persons
who are in the opinion of the Central Government
capable of representing industry, equipment and
appliance manufacturers, architects and consumers
(q) such number of persons, not exceeding two as members;
may be nominated by the Governing Council as
members
(r) Director-General of Bureau ex officio member-
Secretary.
SECTION 05: MEETINGS OF GOVERNING COUNCIL.
(1) The Governing Council shall meet at such times and places, and shall observe such rules of procedure in regard to the transaction of business at its meetings (including quorum at such meetings) as may be provided by regulations.
(2) The Chairperson or, if for any reason, he is unable to attend a meeting of the Governing Council, any other member chosen by the members present from amongst themselves at the meeting shall preside at the meeting.
(3) All questions which come up before any meeting of the Governing Council shall be decided by a majority vote of the members present and voting, and in the event of an equality of votes, the Chairperson or in his absence, the person presiding, shall have a second or casting vote.
SECTION 06: VACANCIES, ETC. NOT TO INVALIDATE PROCEEDINGS OF BUREAU, GOVERNING COUNCIL OR COMMITTEE.
No act or proceeding of the Bureau or the Governing Council or any Committee shall be invalid merely by reason of—
(a) any vacancy in, or any defect in the constitution of, the Bureau or the Governing Council or the Committee; or
(b) any defect in the appointment of a person acting as a Director-General or Secretary of the Bureau or a member of the Governing Council or the Committee; or
(c) any irregularity in the procedure of the Bureau or the Governing Council or the Committee not affecting the merits of the case.
SECTION 07: REMOVAL OF MEMBER FROM OFFICE.
The Central Government shall remove a member referred to in clauses (o), (p) and (q) of subsection (2) of Section 4 from office if he—
(a) is, or at any time has been, adjudicated as insolvent;
(b) is of unsound mind and stands so declared by a competent court;
(c) has been convicted of an offence which, in the opinion of the Central Government, involves a moral turpitude;
(d) has, in the opinion of the Central Government, so abused his position as to render his continuation in office detrimental to the public interest: Provided that no member shall be removed under this clause unless he has been given a reasonable opportunity of being heard in the matter.
SECTION 08: CONSTITUTION OF ADVISORY COMMITTEES AND OTHER COMMITTEES.
(1) Subject to any regulations made in this behalf, the Bureau shall, within six months from the date of commencement of this Act, constitute Advisory Committees for the efficient discharge of its functions.
(2) Each Advisory Committee shall consist of a Chairperson and such other members as may be determined by regulations.
(3) Without prejudice to the powers contained in sub-section (1), the Bureau may constitute, such number of technical committees of experts for the formulation of energy consumption standards or norms in respect of equipment or processes, as it considers necessary.
SECTION 09: DIRECTOR GENERAL OF BUREAU.
(1) The Central Government shall, by notification, appoint a Director-General from amongst persons of ability and standing, having adequate knowledge and experience in dealing with the matters relating to energy production, supply and energy management, standardisation and efficient use of energy and its conservation.
(2) The Central Government shall, by notification, appoint any person not below the rank of Deputy Secretary to the Government of India as Secretary of the Bureau.
(3) The Director-General shall hold office for a term of three years from the date on which he enters upon his office or until he attains the age of sixty years, whichever is earlier.
(4) The salary and allowances payable to the Director-General and other terms and conditions of his service and other terms and conditions of service of the Secretary of the Bureau shall be such as may be prescribed.
(5) Subject to general superintendence, direction and management of the affairs by the
Governing Council, the Director-General of the Bureau shall be the Chief Executive Authority of the Bureau.
(6) The Director-General of the Bureau shall exercise and discharge such powers and duties of the Bureau as may be determined by regulations.
SECTION 10: OFFICERS AND EMPLOYEES OF BUREAU.
(1) The Central Government may appoint such other officers and employees in the Bureau as it considers necessary for the efficient discharge of its functions under this Act.
(2) The terms and conditions of service of officers and other employees of the Bureau appointed under sub-section (1) shall be such as may be prescribed.
SECTION 11: AUTHENTICATION OF ORDERS AND DECISIONS OF BUREAU.
All orders and decisions of the Bureau shall be authenticated by the signature of the Director- General or any other officer of the Bureau authorised by the Director-General in this behalf.
SECTION 12: TRANSFER OF ASSETS, LIABILITIES AND EMPLOYEES OF ENERGY MANAGEMENT CENTRE.
(1) On and from the date of establishment of the Bureau—
(a) any reference to the Energy Management Centre in any law other than this Act or in any contract or other instrument shall be deemed as a reference to the Bureau;
(b) all properties and assets, movable and immovable of, or belonging to, the Energy Management Centre shall vest in the Bureau;
(c) all the rights and liabilities of the Energy Management Centre shall be transferred to, and be the rights and liabilities of, the Bureau;
(d) without prejudice to the provisions of clause (c), all debts, obligations and liabilities incurred, all contracts entered into and all matters and things engaged to be done by, with or for the Energy Management Centre immediately before that date, for or in connection with the purposes of the said Centre shall be deemed to have been incurred, entered into, or engaged to be done by, with or for, the Bureau;
(e) all sums of money due to the Energy Management Centre immediately before that date shall be deemed to be due to the Bureau;
(f) all suits and other legal proceedings instituted or which could have been instituted by or against the Energy Management Centre immediately before that date may be continued or may be instituted by or against the Bureau; and
(g) every employee holding any office under the Energy Management Centre immediately before that date shall hold his office in the Bureau by the same tenure and upon the same terms and conditions of service as respects remuneration, leave, provident fund, retirement or other terminal benefits as he would have held such office if the Bureau had not been established and shall continue to do so as an employee of the
Bureau or until the expiry of six months from that date if such employee opts not to be the employee of the Bureau within such period.
(2) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947) or in any other law for the time being in force, the absorption of any employee by the Bureau in its regular service under this section shall not entitle such employee to any compensation under that Act or other law and no such claim shall be entertained by any court, tribunal or other authority.
SECTION 13: POWERS AND FUNCTIONS OF BUREAU.
(1) The Bureau shall, effectively co-ordinate with designated consumers, designated agencies and other agencies, recognise and utilise the existing resources and infrastructure, in performing the functions assigned to it by or under this Act.
(2) The Bureau may perform such functions and exercise such powers as may be assigned to it by or under this Act and in particular, such functions and powers include the function and power to—
(a) recommend to the Central Government the norms for processes and energy consumption standards required to be notified under clause (a) of Section 14-;
(b) recommend to the Central Government the particulars required to be displayed on label on equipment or on appliances and manner of their display under clause (d) of Section 14-;
(c) recommend to the Central Government for notifying any user or class of users of energy as a designated consumer under clause (e) of Section 14-;
(d) take suitable steps to prescribe guidelines for energy conservation building codes under clause (p) of Section 14-;
(e) take all measures necessary to create awareness and disseminate information for efficient use of energy and its conservation;
(f) arrange and organise training of personnel and specialists in the techniques for efficient use of energy and its conservation;
(g) strengthen consultancy services in the field of energy conservation;
(h) promote research and development in the field of energy conservation;
(i) develop testing and certification procedure and promote testing facilities for certification and testing for energy consumption of equipment and appliances;
(j) formulate and facilitate implementation of pilot projects and demonstration projects for promotion of efficient use of energy and its conservation;
(k) promote use of energy efficient processes, equipment, devices and systems;
(l) promote innovative financing of energy efficiency projects;
Powers and functions of Bureau.
(m) give financial assistance to institutions for promoting efficient use of energy and its conservation;
(n) levy fee, as may be determined by regulations, for services provided for promoting efficient use of energy and its conservation;
(o) maintain a list of accredited energy auditors as may be specified by regulations;
(p) specify, by regulations, qualifications for the accredited energy auditors;
(q) specify, by regulations, the manner and intervals of time in which the energy audit shall be conducted;
(r) specify, by regulations, certification procedures for energy managers to be designated or appointed by designated consumers;
(s) prepare educational curriculum on efficient use of energy and its conservation for educational institutions, boards, universities or autonomous bodies and coordinate with them for inclusion of such curriculum in their syllabus;
(t) implement international co-operation programmes relating to efficient use of energy and its conservation as may be assigned to it by the Central Government;
(u) perform such other functions as may be prescribed.
SECTION 14: POWER OF CENTRAL GOVERNMENT TO ENFORCE EFFICIENT USE OF ENERGY AND ITS CONSERVATION.
The Central Government may, by notification, in consultation with the Bureau,—
(a) specify the norms for processes and energy consumption standards for any equipment, appliance which consumes, generates, transmits or supplies energy;
(b) specify equipment or appliance or class of equipments or appliances, as the case may be,for the purposes of this Act;
(c) prohibit manufacture or sale or purchase or import of equipment or appliance specified under clause (b), unless such equipment or appliance conforms to energy consumption standards :
Provided that no notification prohibiting manufacture or sale or purchase or import of equipment or appliance shall be issued within two years from the date of notification issued under clause (a) of this section;
(d) direct display of such particulars on label on equipment or on appliance specified under clause (b) and in such manner as may be specified by regulations;
(e) specify, having regard to the intensity or quantity of energy consumed and the amount of investment required for switching over to energy efficient equipments and capacity of industry to invest in it and availability of the energy efficient machinery and equipment required by the industry, any user or class of users of energy as a designated consumer for the purposes of this Act;
(f) alter the list of Energy Intensive Industries specified in the Schedule;
(g) establish and prescribe such energy consumption norms and standards for designated consumers as it may consider necessary : Provided that the Central Government may prescribe different norms and standards for different designated consumers having regard to such factors as may be prescribed;
(h) direct, having regard to quantity of energy consumed or the norms and standards of energy consumption specified under clause (a), the Energy Intensive Industries specified in the Schedule to get energy audit conducted by an accredited energy auditor in such manner and intervals of time as may be specified by
86540
103860
630
114
59824