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II. (1) If
the clear profit of a licensee in any year of account is in
excess of the amount of reasonable return, one-third of such
excess, not exceeding 1[five per cent] of the amount of reasonable
return, shall be at the disposal of the undertaking. Of the
balance of the excess, one-half shall be appropriated to a
reserve which shall be appropriated to a reserve which shall
be called the Tariffs and Dividends Control Reserve and the
remaining half shall either be distributed in the form of
a proportional rebate on the amounts collected from the sale
of electricity and meter rentals or carried forward in the
accounts of the licensee for distribution to the consumers
in future, in such manner as the State Government may direct.
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(2)
The Tariffs and Dividends Control Reserve shall be available
for disposal by the licensee only to the extent by which the
clear profit is less than the reasonable return in any yer
of account.
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(3)
On the purchase of the undertaking under the terms of its
license any balance remaining in the Tariffs and Dividends
Control Reserve shall be handed over to the purchaser and
maintained as such Tariffs and Dividends Control Reserve :
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2[Provided
that where the undertaking is purchased by the Board or the
State Government, the amount of the Reserve may be deducted
from the price payable to the licnsee.]
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3[(4)
On the purchase of the undertaking after the expiry, or on
the revocation of its licence or otherwise, all amounts of
rebate lying undistributed to the consumers on the date of
such purchase shall be handed over to the purchaser who, in
turn, shall enter the same in his books of account, under
the heading Consumers’ Rebate Reserve and any amount lying
undistributed in that Reserve shall be carried forward for
distribution to the consumer concerned.
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Provided
that the share of money in the Consumers’ Rebate Reserve payable
to the consumers who are not traceable or who have ceased
to tbe consumers in relation to that undertaking, may be utilised
in the development works of the purchaser]
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III. There shall be created
from existing reserves or from the revenues of the undertaking
a reserve to be called “Contingencies Reserve”.
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IV. (1) The licensee shall appropriate
to Contingencies Reserve from the revenues of each year of
account a sum not less than one-quarter of one per centum
and not more than one-half of one per centum of the original
cost of fixed assets, provided that if the said reserve exceeds,
or would by such appropriation, be caused to exceed, five
per centum of the original cost of fixed assets, no appropriation
shall be made which would have the effect of increasing the
reserve beyond the said maximum.
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4[(2) The sums
appropriated to the Contingencies Reserve shall be invested
in securities authorised under the Indian Trusts Act, 1882
and such investment shall be made within a period of six months
of the close of the year of account in which such appropriation
is made.] 2 of 1982
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2
of 1882 |
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V. 5[(1)] The Contingencies
Reserve shall not be drawn upon during the currency of the
licence except to meet such charges as the State Government
may approve as being --
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(a) expenses or loss of profits
arising out of accidents, strikes or circumstances which the
management could not have prevented :
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(b)
expenses on replacement or removal of plant or works other
than expenses requisite for normal maintenance or renewal;
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(c) compensation payable under
any law for the time being in force and for which no other
provision is made.
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1 Subs. by
Act 101 of 1956, s. 27,for "71/2 percent".(w.e..f
1-4-1957).
2 Ins. by Act 30 of 1966, s. 21(w.e.f. 1-4-1966).
3 Ins. by Act 115 of 1976, s. 33(w.e.f. 8-10-1976).
4 Subs. by Act 30 of 1966, s. 21 for former sub-paragraph (2)
(w.e.f. 1-4-1966).
5 Paragraph V re-numbered as sub-paragraph (1) thereof by Act
101 of 1956, s. 27(w.e.f. 1-4-1957).
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