UPSC Prelims 2002 Q21: Indian Economy – Infrastructure & Industry
Consider the following statements: The Draft Electricity Bill, 2001 seeks to replace
1. Indian Electricity Act, 1910
2. Electricity (Supply) Act, 1948
3. Electricity Regulatory Commission Act, 1998
4. State Electricity Boards
Which of these statements are correct?
- (a) 1, 2 and 3
- (b) 2, 3 and 4
- (c) 1, 2 and 4
- (d) 1, 3 and 4
Answer: (a) 1, 2 and 3
Explanation
What the Draft Electricity Bill, 2001 sought to replace
| Law or body | Replaced? |
|---|---|
| Indian Electricity Act, 1910 | Yes |
| Electricity (Supply) Act, 1948 | Yes |
| Electricity Regulatory Commissions Act, 1998 | Yes — consolidated into the new law |
| State Electricity Boards | No — the Bill reorganised them, but the Boards were not what it replaced |
The Draft Electricity Bill, 2001 proposed to consolidate and replace the three statutes of 1910, 1948 and 1998 (it later became the Electricity Act, 2003). State Electricity Boards are bodies, which were unbundled, not an Act. Hence statements 1, 2 and 3.
Answer: (a) 1, 2 and 3.
Why each option is right or wrong
- (a) CORRECT. The three Acts were replaced.
- (b) Incorrect. It includes the State Electricity Boards.
- (c) Incorrect. It includes the Boards and omits the 1998 Act.
- (d) Incorrect. It includes the Boards and omits the 1948 Act.
Key point
Electricity Act 2003 replaced the 1910, 1948 and 1998 Acts and unbundled the SEBs.
Remember
Electricity Act, 2003 replaced the Acts of 1910, 1948 and 1998.
Common mistakes
- Choosing State Electricity Boards as a thing replaced; they were restructured.
- Leaving out the Electricity Regulatory Commissions Act, 1998 from the list.
- Confusing the Draft Bill of 2001 with the Act of 2003.
Exam tip
Acts replace Acts; boards are restructured. So pick the statements naming Acts.
Sources
- Ministry of Power — The Electricity Act, 2003
- Ramesh Singh — Indian Economy