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Role and Responsibility of State Government

ROLE : Role of state government is an overall facilitator and enforcement of EC Act.


  • Designate a state agency to co-ordinate, regulate and enforce provisions of the EC Act within the state.
  • Establish of EC fund for implementing EC Act

SDA would be run its operation from the resources generated from its activities as well as a State Energy Conservation Fund being set up for the purposes of promotion of efficient use of energy and conservation within the State. To the Fund shall be credited all grants and loans that may be made by the State Government or, Central Government or any other organization or individual for the purposes of this Act.

The Fund shall be utilized for meeting the expenses incurred for implementing the provision of the EC Act. State Government would nominate an authority / persons to administer these funds.

  • Regulatory intervention through issue of government orders for implementing appropriate EC measures.
  • Every rule made by the State Government shall be laid, may be after it is made, before each House of the State Legislature where it consists of two Houses, or where such Legislature consists of one House, before that House.


  • The State Government may, by notification, makes rules for carrying out the provisions of this Act and not inconsistent with the rules, if any, made by the Central Government
  • In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:
  • Energy conservation building codes under clause (a) section 15;
  • The form, the manner and the period within which information with regard to energy consumption shall be furnished under clause (h) of section 15;
  • The person or any authority who shall administer the Fund and the manner in which the Fund shall be administered under sub-section (4) of section 16;
  • The matters to be included for the purposes of inspection under sub- section (2) of section 17;
  • Any other matter which is to be, or may be, prescribed, or in respect of which provision is to be made, or may be made, by rules.



If any person fails to comply with the provision of clause (c) or the clause (d) or clause (h) or clause (i) or clause (k) or clause ~ (I) or clause (n) or clause (r ) or clause (s) of section 14 or clause (b) or clause (c) or clause (h) of section 15, he shall be liable to a penalty which shall not exceed ten thousand rupees for each such failures and, in the case of continuing failures, with an additional penalty which may extend to one thousand rupees for every day during which such failures continues:

Any amount payable under this section, if not paid, may be recovered as if it were an arrear of land revenue.


For the purpose of adjudging, the State government shall appoint any of its members to be an adjudicating officer for holding an inquiry in such manner as may be prescribed by the Central Government, after giving any person concerned a reasonable opportunity of being heard for the purpose of imposing any penalty.

While holding an inquiry the adjudicating officer shall have power to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case of give evidence or produce any document which in the opinion of the adjudicating officer, may he is satisfied that the person has failed to comply with the provision of any of the clauses of the sections specified in section 26, he may impose such penalty as he thinks fit in accordance with the provisions of any of those clauses of that section:

Provided that where a state commission has both been established in a state, the government of the state shall appoint any of its officer not .below the rank equivalent to a Secretary dealing with legal affairs in that State to be an adjudicating officer for the purposes of this section and such officer shall cease to be an adjudicating officer immediately on the appointment of an adjudicating officer by the State Commission on its establishment in the State:

Provided further that where an adjudicating officer appointed by a State Government ceased to be an adjudicating officer, he shall transfer to the adjudicating officer appointed by the State Commission all matters being adjudicating by him and thereafter the adjudicating officer appointed by the State Commission shall adjudicate the penalties on such matters.


While adjudicating the quantum of penalty under section 26, the adjudicating officer shall have due regard to the following factors, namely

  1. The amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default;
  2. The repetitive nature of the default.


No suit, prosecution or other legal proceedings shall lie against the Central Government or Director-General or Secretary or State Government or any officer of those Government or State Commission or its members or any member or officer or other employee of the Bureau for anything which is in good faith done or intended to be done this Act or rules or regulations made there under.


If the State Government is of the opinion that it is necessary or expedient so to do in the public interest, it ma y, by notification and subject to such conditions as may be specified in the notification, exempt any designated consumer or class of designated consumers from application of all or any of the provisions of this Act:

Provided that the State Government shall not grant exemption to any designated consumer or class of designated consumers for the period exceeding five years:

Provided further that the State Government shall consult the Bureau of Energy Efficiency before granting such exemption.


It is expected that State Designated Agencies would ensure compliance of the various regulatory provisions through channels of effective and user friendly communication and with the minimum field intervention towards enforcement. However, major benefits in terms of public perception are expected to outflow from their visibility as regulators.

While State Designated Agencies may augment their legal wings, they may request Government to delegate enforcement functions in respect of standards and labeling and building codes to appropriate departments.

State Designated Agencies would have to perform wide range of functions with diverse roles as a developer, facilitator, and regulator and as enforcer. The role as a developer and facilitator are complementary to each other, while outwardly the role of a regulator and enforcer appears to be distinct and divergent. Viewed from such a perspective, one would appreciate the supportive nature of this role.

Institutional mechanism of State Designated Agencies should be viewed from the broader perspective of EC Act 2001 in giving direction and thrust to an orderly and phased implementation of energy conservation measures by the widest spectrum of users. This calls for wider participation by stakeholders- public, business community, service providers, and financial agencies in a business like manner. This is challenging indeed- opportunity lies in responding to the same.

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