The Energy Conservation Act, 2001
# THE ENERGY CONSERVATION ACT, 2001

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# ARRANGEMENT OF SECTIONS

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CHAPTER I

PRELIMINARY

SECTIONS

1. Short title, extent and commencement.
2. Definitions.

CHAPTER II

BUREAU OF ENERGY EFFICIENCY

3. Establishment and incorporation of Bureau of Energy Efficiency.
4. Management of Bureau.
5. Meetings of Governing Council.
6. Vacancies, etc., not to invalidate proceedings of Bureau, Governing Council or Committee.
7. Removal of member from office.
8. Constitution of Advisory Committees and other committees.
9. Director-General of Bureau.
10. Officers and employees of Bureau.
11. Authentication of orders and decisions of Bureau.

CHAPTER III

TRANSFER OF ASSETS, LIABILITIES, ETC., OF ENERGY MANAGEMENT CENTRE TO BUREAU

12. Transfer of assets, liabilities and employees of Energy Management Centre.

CHAPTER IV

POWERS AND FUNCTIONS OF BUREAU

13. Powers and functions of Bureau.

13A. Prohibition of use of deceptive name, etc.

CHAPTER V

POWER OF CENTRAL GOVERNMENT TO FACILITATE AND ENFORCE EFFICIENT USE OF ENERGY AND ITS

CONSERVATION

14. Power of Central Government to enforce efficient use of energy and its conservation.

14A. Issuance of energy savings certificate.

14AA. Issuance of carbon credit certificate.

14B. Power of Central Government to specify value of energy.

CHAPTER VI

POWER OF STATE GOVERNMENT TO FACILITATE AND ENFORCE EFFICIENT USE OF ENERGY AND ITS

CONSERVATION

15. Power of State Government to enforce certain provisions for efficient use of energy and its

conservation.

15A B d f d i d


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SECTIONS

16. Establishment of Fund by State Government.
17. Power of inspection.
18. Power of Central Government or State Government to issue directions.

CHAPTER VII

FINANCE, ACCOUNTS AND AUDIT OF BUREAU

19. Grants and loans by Central Government.
20. Establishment of Fund by Central Government.
21. Borrowing powers of Bureau.
22. Budget.
23. Annual report.
24. Annual report to be laid before Parliament.
25. Accounts and audit.

CHAPTER VIII

PENALTIES AND ADJUDICATION

26. Penalty.
27. Power to adjudicate.
27A. Power of State Commission to make regulations.
28. Factors to be taken into account by adjudicating officer.
29. Civil court not to have jurisdiction.

CHAPTER IX

APPELLATE TRIBUNAL FOR ENERGY CONSERVATION

30. Appellate Tribunal.
31. Appeal to Appellate Tribunal.
# 31A. Procedure and powers of Appellate Tribunal.
32. to 43. [Omitted.]
44. Right of appellant to take assistance of legal practitioner or accredited auditor and of Government

to appoint presenting officers.

45. Appeal to Supreme Court.

CHAPTER X

MISCELLANEOUS

46. Power of Central Government to issue directions to Bureau.
47. Power of Central Government to supersede Bureau.
48. Default by companies.
49. Exemption from tax on income.
50. Protection of action taken in good faith.
51. Delegation.
52. Power to obtain information.
53. Power to exempt.
54. Chairperson, Members, officers and employees of the Appellate Tribunal, Members of State

Commission, Director-General, Secretary, members, officers and employees of the Bureau to be
public servants.

55. Power of Central Government to issue directions.
56. Power of Central Government to make rules.
57. Power of State Government to make rules.
58. Power of Bureau to make regulations.
59. Rules and regulations to be laid before Parliament and State Legislature.
60. Application of other laws not barred.
61. Provisions of Act not to apply in certain cases.
62. Power to remove difficulty.


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# THE ENERGY CONSERVATION ACT, 2001

 ACT NO. 52 OF 2001

[29th September, 2001.]

# An Act to provide for efficient use of energy and its conservation and for matters connected
 therewith or incidental thereto.

BE it enacted by Parliament in the Fifty-second Year of the Republic of India as follows:—

CHAPTER I

PRELIMINARY

**1. Short title, extent and commencement.—(1) This Act may be called the Energy Conservation**

Act, 2001.

(2) It extends to the whole of India [1]***.

(3) It shall come into force on such date[2] 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.

**2. Definitions.—In this Act, unless the context otherwise requires,—**

(a) “accredited energy auditor” means [3][an energy auditor accredited in accordance with the

provisions of] clause (p) of sub-section (2) of section 13;

(b) “Appellate Tribunal” means the Appellate Tribunal for Energy Conservation [4][referred to in

section 30];

5[ 6[(c) “building” means any structure or erection or part of structure or erection––

(i) constructed after the rules relating to energy conservation and sustainable building codes

have been notified by the Central Government under clause (p) of section 14 and by the State
Government under clause (a) of section 15;

(ii) which has a minimum connected load of 100 Kilowatt (kW) or contract demand of 120

Kilovolt Ampere (kVA); and

(iii) which is used or intended to be used for commercial purpose or as an office building or

for residential purpose:

Provided that the State Government may specify a lower connected load or contract demand than

the load or demand specified above;]]

(d) “Bureau” means the Bureau of Energy Efficiency established under sub-section (1) of

section 3;

7[(da) “carbon credit certificate” means the certificate issued by the Central Government or any

agency authorised by it under section 14AA;

(db) “carbon credit trading scheme” means the scheme for reduction of carbon emissions notified

by the Central Government under clause (w) of section 14;]

(e) “Chairperson” means the Chairperson of the Governing Council;

1. The words “except the State of Jammu and Kashmir” omitted by Act 34 of 2019, s. 95 and the Fifth Schedule
(w.e.f. 31-10- 2019).
2. 28th June, 2012 (sections 31, 33, 44, 45), vide notification No. S. O. 1433(E), dated 28th June, 2012, see Gazette of India,

Extraordinary, Part II, sec. 3(ii).

1st March, 2002 (sections 1 to 29 and 46 to 62), vide notification No. S.O. 268 (E), dated 1st March, 2002, see Gazette of India,

Extraordinary, Part II, sec. 3(ii).

3. Subs. by Act 28 of 2010, s. 2, for “an auditor possessing qualifications specified under” (w.e.f. 24-8-2010).
4. Subs. by s. 2, ibid., for “established under section 30” (w.e.f. 24-8-2010).
5. Subs. by s. 2, ibid., for clause (c) (w.e.f. 24-8-2010).


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(f) “designated agency” means any agency designated under clause (d) of section 15;

(g) “designated consumer” means any consumer specified under clause (e) of section 14;

1[(h) “energy” means any form of energy derived from fossil fuels or non-fossil sources or

renewable sources;]

(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;

2[(ia) “energy auditor” means any individual possessing the qualifications prescribed under clause

(m) of section 14;]

3[(j) “energy conservation and sustainable building code” means the code which provides norms

and standards for energy efficiency and its conservation, use of renewable energy and other green
building requirements for a 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;

4[(ma) “energy savings certificate” means any energy savings certificate issued to the designated

consumers under sub-section (1) of section 14A;

(maa) “equipment or appliance” means any equipment or appliance which consumes, generates,

transmits or supplies energy and includes any device that consumes any form of energy and produces
a desired work;]

(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;

5[(qa) “registered entity” means any entity, including designated consumers, registered for carbon

credit trading scheme specified under clause (w) of section 14;]

(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);

6[(ta) “vehicle” shall have the same meaning as assigned to it in clause (28) of section 2 of the

Motor Vehicles Act, 1988 (59 of 1988);

(tb) “vessel” includes every description of water craft used or capable of being used in inland

waters or in coastal waters, including any ship, boat, sailing vessel, tug, barge or other description of
vessel including non-displacement craft, amphibious craft, wing-in-ground craft, ferry, roll-on-roll-off

1. Subs. by Act 19 of 2022, s. 2, for clause (h) (w.e.f. 1-1-2023).
2. Ins. by s. 2, ibid. (w.e.f. 1-1-2023).
3. Subs. by s. 2, ibid., for clause (j) (w.e.f. 1-1-2023).
4. Ins. by Act 28 of 2010, s. 2 (w.e.f. 24-8-2010).


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vessel, container vessel, tanker vessel, gas carrier or floating unit or dumb vessel used for
transportation, storage or accommodation within or through inland waters and coastal waters;]

(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.

CHAPTER II

BUREAU OF ENERGY EFFICIENCY

**3. Establishment and incorporation of Bureau of Energy Efficiency.—(1) With effect from such**

date[1] 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.

**4. 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 [2][thirty-one,
but not exceeding thirty-seven], members to be appointed by the Central Government.

(2) The Governing Council shall consist of the following members, namely:—


(a) the Minister in charge of the Ministry or Department of

the Central Government dealing with the Power

(b) the Secretary to the Government of India, in charge of

the Ministry or Department of the Central Government
dealing with the Power

(c) the Secretary to the Government of India, in 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 charge of

the Ministry or Department of the Central Government
dealing with the Coal

(e) the Secretary to the Government of India, in 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 charge of the

Ministry or Department of the Central Government
dealing with the Atomic Energy

(g) the Secretary to the Government of India, in charge of

the Ministry or Department of the Central Government
dealing with the Consumer Affairs

3[(ga) the Secretary to the Government of India, in charge of

the Ministry or Department of the Central Government
dealing with the Environment, Forest and Climate
Change


_ex officio Chairperson;_

_ex officio member;_

_ex officio member;_

_ex officio member;_

_ex officio member;_

_ex officio member;_

_ex officio member;_

_ex officio member;_


1. 1st March, 2002 vide notification No. S.O. 269(E), dated 1st March, 2002 see Gazette of India, Extraordinary, Part II, sec. 3(ii)


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(gb) the Secretary to the Government of India, in charge of _ex officio member;_

the Ministry or Department of the Central Government
dealing with the Housing and Urban Affairs

(gc) the Secretary to the Government of India, in charge of _ex officio member;_

the Ministry or Department of the Central Government
dealing with the Road Transport and Highways

(gd) the Secretary to the Government of India, in charge of _ex officio member;_

the Ministry or Department of the Central Government
dealing with the Steel

(ge) the Secretary to the Government of India, in charge of _ex officio member;_

the Ministry or Department of the Central Government
dealing with the Civil Aviation

(gf) the Secretary to the Government of India, in charge of _ex officio member;_

the Ministry or Department of the Central Government
dealing with the Ports, Shipping and Waterways

(gg) Member of the Railway Board (in charge of Energy), _ex officio member;]_

Ministry of Railways

(h) Chairman of the Central Electricity Authority established _ex officio member;_

under the Electricity (Supply) Act, 1948 (54 of 1948)

(i) Director-General of the Central Power Research Institute _ex officio member;_

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 (XXI of 1860)

(k) Chairman-cum-Managing Director of the Central Mine _ex officio member;_

Planning and Design Institute Limited, a company
incorporated under the Companies Act, 1956

(1 of 1956)


(l) Director-General of the Bureau of Indian Standards

established under the Bureau of Indian Standards Act,
1986 (63 of 1986)

(m) Director-General of the National Test House,

Department of Supply, Ministry of Commerce and
Industry, Kolkata

1[(ma) Director-General of the National Productivity

Council, Department for Promotion of Industry and
Internal Trade, Ministry of Commerce and Industry

(n) Managing Director of the Indian Renewable Energy

Development Agency Limited, a company incorporated
under the Companies Act, 1956 (1 of 1956)

2[(o) one official each from the energy or power department

of the five States from the five power regions, not
below the rank of Principal Secretary to the State
Government, to be appointed by the Central

Government


_ex officio member;_

_ex officio member;_

_ex officio member;]_

_ex officio member;_

member;]


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1[(p) such number of persons, not exceeding seven, as may

be prescribed, to be appointed by the Central
Government as members, from amongst persons who, in
the opinion of the Central Government, are experts or
capable of representing industry, equipment and
appliance manufacturers, architects, institutes and
consumers

(q) such number of persons, not exceeding two as may be

nominated by the Governing Council as members


member;]

member;


(r) Director-General of Bureau _ex officio member-_
secretary.

(3) The Governing Council may exercise all powers and do all acts and things which may be

exercised or done by the Bureau.

(4) Every member referred to in clauses (o), (p) and (q) of sub-section (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.

**5. 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.

**6. 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.

**7. Removal of member from office.—The Central Government shall remove a member referred to**

in clauses (o), (p) and (q) of sub-section (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.


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**8. 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.

**9. 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 [1][five 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.

**10. Officers and employees of Bureau.—(1)** [2][The Bureau] 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.

**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.

CHAPTER III

TRANSFER OF ASSETS, LIABILITIES, ETC., OF ENERGY MANAGEMENT CENTRE TO BUREAU

**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;


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(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.

CHAPTER IV

POWERS AND FUNCTIONS OF BUREAU

**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 [1][and other standards required to be
prescribed under other provisions of this Act];

2[(aa) recommend to the Central Government for issuing of the energy savings certificate under

section 14A;]

(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 [3][energy conservation and sustainable 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 [4][or undertake] 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;

1. Ins. by Act 19 of 2022, s. 4, (w.e.f. 1-1-2023).
2. Ins. by Act 28 of 2010, s. 5 (w.e.f. 24-8-2010).


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(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;

1[(p) specify, by regulations, the qualifications, criteria and conditions subject to which a person

may be accredited as an energy auditor and the procedure for such accreditation;]

(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 [2][energy auditors and 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;

3[(sa) conduct examination for capacity building and strengthening of services in the field of

energy conservation including certification of energy managers and energy auditors;]

(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;

4[(ta) collaborate with any international institution or organisation or to obtain membership of

bodies having similar objectives as that of the Bureau, in consultation with the Central Government;

(tb) authorise any agency in the country or outside the country to carry out any of the functions of

the Bureau, for such purposes, and subject to such terms and conditions, as may be specified by
regulations;

(tc) undertake, or authorise any other body which meets with such technical qualifications, as

may be specified by regulations, to test samples for purposes other than those specified in section 14;

(td) empanel technical experts to promote energy efficiency and carbon credit trading activities

undertaken to meet the objectives of the Act;

(te) recommend to the Central Government on the requirements to be specified in the carbon

credit trading scheme to be notified under clause (w) of section 14;

(tf) recommend minimum share of consumption of non-fossil sources by designated consumers as

energy or feedstock;]

(u) perform such other functions as may be prescribed.

5[13A. Prohibition of use of deceptive name, etc.—(1) No person shall, without previous

permission of the Bureau, use any name which so nearly resembles the name of the Bureau as to deceive
or likely to deceive the public.

(2) Notwithstanding anything contained in any other law for the time being in force, no registering

authority shall register any company, firm or other body of persons which bears any name or mark
resembling the name of the Bureau.]

CHAPTER V

POWER OF CENTRAL GOVERNMENT TO FACILITATE AND ENFORCE EFFICIENT USE OF ENERGY AND ITS

CONSERVATION

**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,—

1. Subs. by Act 28 of 2010, s. 5, for clause (p) (w.e.f. 24-8-2010).
2. Subs. by s. 5, ibid., for “energy managers” (w.e.f. 24-8-2010).
3. Ins. by s. 5, ibid. (w.e.f. 24-8-2010).


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(a) specify the norms for processes and energy consumption standards for any equipment,

1[appliance, vehicle, vessel, industrial unit, building or establishment] which consumes, generates,
transmits or supplies energy;

(b) specify equipment or appliance [2][or vehicle, vessel, industrial unit, building or establishment]

or class of equipments or appliances, as the case may be, for the purposes of this Act;

3[(c) prohibit manufacture or import of any equipment or appliance or vehicle or vessel specified

under clause (b), unless it conforms to energy consumption standards specified under clause (a):

Provided that an industrial unit specified under clause (b) shall close its operations unless it

conforms to the norms for processes or energy consumption standards specified under clause (a):

Provided further that from the date of notification of norms for processes and energy consumption

standards under clause (a), no notification prohibiting such manufacture or import shall be issued––

(i) within a period of six months in the case of equipment or appliance or vehicle or vessel;

and

(ii) within a period of two years for closure of industrial unit:

Provided also that the Central Government may, having regard to the market share and the

technological development having impact on equipment or appliance or vehicle or vessel, and for
reasons to be recorded in writing, extend the said period of six months referred to above, by a further
period not exceeding six month;]

(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,
4[any user or class of users of energy in the energy intensive industries and other establishments as
specified in the Schedule as a designated consumer] for the purposes of this Act;

(f) alter the list of Energy Intensive Industries [5][and other establishments] 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 [5][and other establishments]
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 regulations;

(i) direct, if considered necessary for efficient use of energy and its conservation, any designated

consumer to get energy audit conducted by an accredited energy auditor;

(j) specify the matters to be included for the purposes of inspection under sub-section (2) of

section 17;

(k) direct any designated consumer to furnish to the designated agency, in such form and manner

and within such period, as may be prescribed, the information with regard to the energy consumed
and action taken on the recommendation of the accredited energy auditor;

(l) direct any designated consumer to designate or appoint [6][energy auditor or energy manager] in

charge of activities for efficient use of energy and its conservation and submit a report, in the form

1. Subs. by Act 19 of 2022, s. 6, for “appliance” (w.e.f. 1-1-2023).
2. Ins. by s. 6, ibid. (w.e.f. 1-1-2023).
3. Subs. by s. 6, ibid., for clause (c) (w.e.f. 1-1-2023).
4. Subs. by Act 28 of 2010, s. 6, for “any user or class of users of energy as a designated consumer” (w.e.f. 24-8-2010).


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and manner as may be prescribed, on the status of energy consumption at the end of every financial
year to the designated agency;

(m) prescribe minimum qualification for [1][energy auditors and energy managers] to be designated

or appointed under clause (l);

(n) direct every designated consumer to comply with energy consumption norms and standards;

(o) direct any designated consumer, who does not fulfil the energy consumption norms and

standards prescribed under clause (g), to prepare a scheme for efficient use of energy and its
conservation and implement such scheme keeping in view the economic viability of the investment in
2[such form, the time within which and the manner] as may be prescribed;

(p) prescribe [3][energy conservation and sustainable building codes] for efficient use of energy and

its conservation in the building or building complex;

(q) amend the [3][energy conservation and sustainable building codes] to suit the regional and local

climatic conditions;

(r) direct every owner or occupier of the building or building complex, being a designated

consumer to comply with the provisions of [3][energy conservation and sustainable building codes] for
efficient use of energy and its conservation;

(s) direct, any designated consumer referred to in clause (r), if considered necessary, for efficient

use of energy and its conservation in his building to get energy audit conducted in respect of such
building by an accredited energy auditor in such manner and intervals of time as may be specified by
regulations;

(t) take all measures necessary to create awareness and disseminate information for efficient use

of energy and its conservation;

(u) arrange and organise training of personnel and specialists in the techniques for efficient use of

energy and its conservation;

(v) take steps to encourage preferential treatment for use of energy efficient equipment or

appliances:

4[(w) specify the carbon credit trading scheme;

(x) specify minimum share of consumption of non-fossil sources by designated consumers as

energy or feedstock, provided different share of consumption may be specified for different types of
non-fossil sources for different designated consumers:]

Provided that the powers under clauses (p) to (s) shall be exercised in consultation with the concerned

State.

**5[14A.** **6[Issuance of energy savings certificate].—(1) The Central Government** 7[or any agency

authorised by it] may issue the energy savings certificate to the designated consumer whose energy
consumption is less than the prescribed norms and standards in accordance with the procedure as may be
prescribed.

(2) The designated consumer whose energy consumption is more than the prescribed norms and

standards shall be entitled to purchase the energy savings certificate to comply with the prescribed norms
and standards.

7[Provided that any other person may also purchase energy saving certificate or carbon credit

certificate on voluntary basis.]

1. Subs. by Act 28 of 2010, s. 6, for “energy managers” (w.e.f. 24-8-2010).
2. Subs. by s. 6, ibid., for “such form and manner” (w.e.f. 24-8-2010).
3. Subs. by Act 19 of 2022, s. 6, for “energy conservation building codes” (w.e.f. 1-1-2023).
4. Ins. by s. 6, ibid. (w.e.f. 1-1-2023).
5. Ins. by Act 28 of 2010, s. 7, (w.e.f. 24-8-2010).
6. Subs. Act 19 of 2022, s. 7, for the marginal heading “Power of Central Government to issue energy savings certificate” (w.e.f. 1-1

-----

1[14AA. Issuance of carbon credit certificate.—(1) The Central Government, or any agency

authorised by it may issue carbon credit certificate to the registered entity which complies with the
requirements of the carbon credit trading scheme.

(2) The registered entity shall be entitled to purchase or sell the carbon credit certificate in accordance

with carbon credit trading scheme specified under clause (w) of section 14.]

**14B. Power of Central Government to specify value of energy.—The Central Government may, in**

consultation with the Bureau, prescribe the value of per metric ton of oil equivalent of energy consumed
for the purposes of this Act.]

CHAPTER VI

POWER OF STATE GOVERNMENT TO FACILITATE AND ENFORCE EFFICIENT USE OF ENERGY AND ITS

CONSERVATION

**15. Power of State Government to enforce certain provisions for efficient use of energy and its**

**conservation.—The State Government may, by notification, in consultation with the Bureau—**

(a) amend the [2][energy conservation and sustainable building codes] to suit the regional and local

climatic conditions and may, by rules made by it, specify and notify [3][energy conservation and
sustainable building codes] with respect to use of energy in the buildings [3][and implement the same
through building bye-laws of the State];

(b) direct every owner or occupier of a building or building complex being a designated consumer

to comply with the provisions of the [3][energy conservation and sustainable building codes];

(c) direct, if considered necessary for efficient use of energy and its conservation, any designated

consumer referred to in clause (b) to get energy audit conducted by an accredited energy auditor in
such manner and at such intervals of time as may be specified by regulations;

(d) designate any agency as designated agency to coordinate, regulate and enforce provisions of

this Act within the State;

(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) take steps to encourage preferential treatment for use of energy efficient equipment or

appliances;

(h) direct, any designated consumer to furnish to the designated agency, in such form and manner

and within such period as may be specified by rules made by it, information with regard to the energy
consumed by such consumer;

4[(ha) levy such fee as may be prescribed for the services rendered by the designated agency to

promote efficient use of energy and its conservation under this Act;]

(i) specify the matters to be included for the purposes of inspection under sub-section (2) of

section 17.

4[15A. Budget of designated agency.—The designated agency shall prepare, in such form and at

such time in each financial year as may be prescribed, its budget for the next financial year, showing the
estimated receipts and expenditure and forward the same to the State Government, which shall include the
same in the annual budget.]

1. Ins. by Act 19 of 2022, s. 8 (w.e.f. 1-1-2023).
2. Subs. by s. 9, ibid., for “energy conservation building codes” (w.e.f. 1-1-2023).


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1[16. Establishment of Fund by State Government.— (1) There shall be constituted a Fund for the

purposes of promotion of efficient use of energy and its conservation within the State to be called the
State Energy Conservation Fund and there shall be credited thereto—

(a) all grants and loans that may be made by the State Government or the Central Government or

any other organisation or individual for the purposes of this Act;

(b) all fees received by the State Government or the designated agency under this Act;

(c) all sums received by the State Government or the designated agency from such other sources

as may be decided by the State Government.

(2) The Fund shall be utilised for meeting the expenses—

(a) of the designated agency in the discharge of its functions;

(b) for the objects and purposes authorised by or under this Act.

(3) The Fund created under sub-section (1) shall be administered by such person or authority and in

such manner as may be prescribed by the rules made by the State Government.]

**17. Power of inspection.—(1) The designated agency may appoint, after the expiry of five years**

from the date of commencement of this Act, as many inspecting officers as may be necessary for the
purpose of ensuring compliance with energy consumption standards specified under clause (a) of
section 14 or ensure display of particulars on label on equipment or appliance specified under clause (b)
of section 14 or for the purpose of performing such other functions as may be assigned to them.

(2) Subject to any rules made under this Act, an inspecting officer shall have power to—

(a) inspect any operation carried on or in connection with the equipment or appliance specified

under clause (b) of section 14 or in respect of which energy standards under clause (a) of section 14
have been specified;

(b) enter any place of designated consumer at which the energy is used for any activity and may

require any proprietor, employee, director, manager or secretary or any other person who may be
attending in any manner to or helping in, carrying on any activity with the help of energy—

(i) to afford him necessary facility to inspect—

(A) any equipment or appliance as he may require and which may be available at such

place;

(B) any production process to ascertain the energy consumption norms and standards;

(ii) to make an inventory of stock of any equipment or appliance checked or verified by him;

(iii) to record the statement of any person which may be useful for, or relevant to, for efficient

use of energy and its conservation under this Act.

(3) An inspecting officer may enter any place of designated consumer—

(a) where any activity with the help of energy is carried on; and

(b) where any equipment or appliance notified under clause (b) of section 14 has been kept,

during the hours at which such place is open for production or conduct of business connected therewith.

(4) An inspecting officer acting under this section shall, on no account, remove or cause to be

removed from the place wherein he has entered, any equipment or appliance or books of account or other
documents.

**18. Power of Central Government or State Government to issue directions.—The Central**

Government or the State Government may, in the exercise of its powers and performance of its functions


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under this Act and for efficient use of energy and its conservation, issue such directions in writing as it
deems fit for the purposes of this Act to any person, officer, authority or any designated consumer and
such person, officer or authority or any designated consumer shall be bound to comply with such
directions.

_Explanation.—For the avoidance of doubts, it is hereby declared that the power to issue directions_

under this section includes the power to direct—

(a) regulation of norms for process and energy consumption standards in any industry or building

or building complex; or

(b) regulation of the energy consumption standards for equipment and appliances.

CHAPTER VII

FINANCE, ACCOUNTS AND AUDIT OF BUREAU

**19. Grants and loans by Central Government.—The Central Government may, after due**

appropriation made by Parliament by law in this behalf, make to the Bureau or to the State Governments
grants and loans of such sums of money as the Central Government may consider necessary.

**20. Establishment of Fund by Central Government.—(1) There shall be constituted a Fund to be**

called as the Central Energy Conservation Fund and there shall be credited thereto—

(a) any grants and loans made to the Bureau by the Central Government under section 19;

(b) all fees received by the Bureau under this Act;

(c) all sums received by the Bureau from such other sources as may be decided upon by the

Central Government.

(2) The Fund shall be applied for meeting—

(a) the salary, allowances and other remuneration of Director-General, Secretary, officers and

other employees of the Bureau;

(b) expenses of the Bureau in the discharge of its functions under section 13;

(c) fee and allowances to be paid to the members of the Governing Council under sub-section (5)

of section 4;

(d) expenses on objects and for purposes authorised by this Act.

**21. Borrowing powers of Bureau.—(1) The Bureau may, with the consent of the Central**

Government or in accordance with the terms of any general or special authority given to it by the Central
Government, borrow money from any source as it may deem fit for discharging all or any of its functions
under this Act.

(2) The Central Government may guarantee, in such manner as it thinks fit, the repayment of the

principal and the payment of interest thereon with respect to the loans borrowed by the Bureau under
sub-section (1).

**22. Budget.—The Bureau shall prepare, in such form and at such time in each financial year as may**

be prescribed, its budget for the next financial year, showing the estimated receipts and expenditure of the
Bureau and forward the same to the Central Government.

**23. Annual report.—The Bureau shall prepare, in such form and at such time in each financial year**

as may be prescribed, its annual report, giving a full account of its activities during the previous financial
year, and submit a copy thereof to the Central Government.

**24. Annual report to be laid before Parliament.—The Central Government shall cause the annual**

report referred to in section 23 to be laid, as soon as may be after it is received, before each House of
Parliament.

**25. Accounts and audit.—(1) The Bureau shall maintain proper accounts and other relevant records**

and prepare an annual statement of accounts in such form as may be prescribed by the Central
Government in consultation with the Comptroller and Auditor-General of India.


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(2) The accounts of the Bureau shall be audited by the Comptroller and Auditor-General of India at

such intervals as may be specified by him and any expenditure incurred in connection with such audit
shall be payable by the Bureau to the Comptroller and Auditor-General.

(3) The Comptroller and Auditor-General of India and any other person appointed by him in

connection with the audit of the accounts of the Bureau shall have the same rights and privileges and
authority in connection with such audit as the Comptroller and Auditor-General generally has in
connection with the audit of the Government accounts, and in particular, shall have the right to demand
the production of books, accounts, connected vouchers and other documents and papers and to inspect
any of the offices of the Bureau.

(4) The accounts of the Bureau as certified by the Comptroller and Auditor-General of India or any

other person appointed by him in this behalf together with the audit report thereon shall be forwarded
annually to the Central Government and that Government shall cause the same to be laid before each
House of Parliament.

CHAPTER VIII

PENALTIES AND ADJUDICATION

1[26. Penalty.—(1) If any person fails to comply with the provisions of clause (h) or clause (i) or

clause (k) or clause (l) of section 14 or clause (c) or clause (h) of section 15, he shall be liable to a penalty
which shall not exceed ten lakh rupees:

Provided that in the case of continuing failures, the person shall be liable to an additional penalty

which may extend to ten thousand rupees for every day during which such failures continue.

(2) Notwithstanding anything contained in this Act or any other Act for the time being in force, if any

person fails to comply with the provisions of clauses (c) and (d) of section 14, he shall in addition to the
penalty of ten lakh rupees, be also liable to pay additional penalty which shall not exceed five thousand
rupees per appliance or equipment in relation to which the non-compliance has occurred, but shall not be
lower than two thousand rupees:

Provided that where such non-compliance relates to any industrial unit or vessel, he shall also be

liable to an additional penalty which shall not exceed twice the price of every metric ton of oil equivalent
consumed in excess of the prescribed norms:

Provided further that if the manufacturer of a vehicle fails to comply with the fuel consumption

norms, he shall also be liable to pay an additional penalty per unit of vehicles sold in the corresponding
year, as follows, namely:—

(i) twenty-five thousand rupees per vehicle for non-compliance of norms up to 0.2 litres per 100

kms;

(ii) fifty thousand rupees per vehicle for non-compliance of norms above 0.2 litres per 100 kms.

(3) If any person fails to comply with the directions issued under clauses (n) and (x) of section 14, he

shall be liable to a penalty which shall not exceed ten lakh rupees for each such failure:

Provided that he shall also be liable to an additional penalty which shall not exceed twice the price of

every metric ton of oil equivalent prescribed under this Act, which is in excess of the prescribed norms.

(4) If a person fails to comply with the provisions of sub-section (1) of section 13A or fails to provide

any information under section 52, he shall be liable to a penalty which may extend to fifty thousand
rupees on first such non-compliance or failure:

Provided that for every subsequent non-compliance or failure, he shall be liable to pay an additional

penalty which shall not exceed ten thousand rupees per day of such non-compliance or failure.

(5) Any amount payable under this section, if not paid, may be recovered as if it were an arrear of

land revenue.]

**27. Power to adjudicate.—(1) For the purpose of adjudging under section 26, the State Commission**

shall appoint any of its members to be an adjudicating officer for holding an inquiry in such manner as


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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.

(2) 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 to give evidence or
produce any document which in the opinion of the adjudicating officer, may be useful for or relevant to
the subject-matter of the inquiry, and if, on such inquiry, he is satisfied that the person has failed to
comply with the provisions 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 not been established in a State, the Government of that

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 that 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 adjudicated by him and thereafter the adjudicating officer appointed by the State
Commission shall adjudicate the penalties on such matters.

1[27A. Power of State Commission to make regulations.—(1) The State Commission may, by

notification, make regulations for discharging its functions under this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may

provide for—

(a) the manner of making application before the State Commission and the fee payable;

(b) any other matter which is to be, or may be, provided by regulations by the State Commission

for the purposes of its function:

Provided that every regulation made by the State Commission under this section shall be laid, as

soon as 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.]

**28. Factors to be taken into account by adjudicating officer.—While adjudicating the quantum of**

penalty under section 26, the adjudicating officer shall have due regard to the following factors,
namely:—

(a) the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a

result of the default;

(b) the repetitive nature of the default.

2[(c) the loss caused to a consumer and amount of compensation thereof.]

**29. Civil court not to have jurisdiction.—No civil court shall have jurisdiction to entertain any suit**

or proceeding in respect of any matter which an adjudicating officer appointed under this Act or the
Appellate Tribunal is empowered by or under this Act to determine and no injunction shall be granted by
any court or other authority in respect of any action taken or to be taken in pursuance of any power
conferred by or under this Act.

CHAPTER IX

APPELLATE TRIBUNAL FOR ENERGY CONSERVATION

3[30. Appellate Tribunal.—The Appellate Tribunal established under section 110 of the Electricity

Act, 2003 (36 of 2003) shall, without prejudice to the provisions of the Electricity Act, 2003, be the
Appellate Tribunal for the purposes of this Act and hear appeals against the orders of the adjudicating
officer or the Central Government or the State Government or any other authority under this Act.]

1. Ins. by Act 19 of 2022, s. 13 (w.e.f. 1-1-2023).


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**31. Appeal to Appellate Tribunal.—(1) Any person aggrieved, by an order made by an adjudicating**

officer or the Central Government or the State Government or any other authority under this Act, may
prefer an appeal to the Appellate Tribunal for Energy Conservation:

Provided that any person, appealing against the order of the adjudicating officer levying any penalty,

shall, while filing the appeal, deposit the amount of such penalty:

Provided further that where in any particular case, the Appellate Tribunal is of the opinion that the

deposit of such penalty would cause undue hardship to such person, the Appellate Tribunal may dispense
with such deposit subject to such conditions as it may deem fit to impose so as to safeguard the realisation
of penalty.

(2) Every appeal under sub-section (1) shall be filed within a period of forty-five days from the date

on which a copy of the order made by the adjudicating officer or the Central Government or the State
Government or any other authority is received by the aggrieved person and it shall be in such form,
verified in such manner and be accompanied by such fee as may be prescribed:

Provided that the Appellate Tribunal may entertain an appeal after the expiry of the said period of

forty-five days if it is satisfied that there was sufficient cause for not filing it within that period.

(3) On receipt of an appeal under sub-section (1), the Appellate Tribunal may, after giving the parties

to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, confirming,
modifying or setting aside the order appealed against.

(4) The Appellate Tribunal shall send a copy of every order made by it to the parties to the appeal and

to the concerned adjudicating officer or the Central Government or the State Government or any other
authority.

(5) The appeal filed before the Appellate Tribunal under sub-section (1) shall be dealt with by it as

expeditiously as possible and endeavour shall be made by it to dispose of the appeal finally within one
hundred and eighty days from the date of receipt of the appeal:

Provided that where an appeal could not be disposed of within the said period of one hundred and

eighty days, the Appellate Tribunal shall record its reasons in writing for not disposing of the appeal
within the said period.

(6) The Appellate Tribunal may, for the purpose of examining the legality, propriety or correctness of

any order made by the adjudicating officer or the Central Government or the State Government or any
other authority under this Act, as the case may be, in relation to any proceeding, on its own motion or
otherwise, call for the records of such proceedings and make such order in the case as it thinks fit.

**1[31A. Procedure and powers of Appellate Tribunal.—The provisions of sections 120 to 123 (both**

inclusive) of the Electricity Act, 2003 (36 of 2003) shall, _mutatis mutandis, apply to the Appellate_
Tribunal in the discharge of its functions under this Act as they apply to it in the discharge of its function
under the Electricity Act, 2003.]

**32. Composition of Appellate Tribunal. [Omitted by the Energy Conservation (Amendment) Act, 2010**

(28 of 2010), s.11 (w.e.f. 24-8-2010)].

**33.** _Qualifications for appointment of Chairperson and Members of Appellate Tribunal. [Omitted by_

_s. 11, ibid. (w.e.f. 24-8-2010)]._

**34.** _Term of office. [Omitted by s.11, ibid._ (w.e.f. 24-8-2010)].

**35.** _Terms and conditions of service. [Omitted by s.11, ibid. (w.e.f. 24-8-2010)]._

**36.** _Vacancies. [Omitted by s.11, ibid. (w.e.f. 24-8-2010)]._

**37.** _Resignation and removal. [Omitted by s.11, ibid. (w.e.f. 24-8-2010)]._

**38.** _Member to act as Chairperson in certain circumstances._ [Omitted by s.11, _ibid._

(w.e.f. 24-8-2010)].

**39.** _Staff of Appellate Tribunal. [Omitted by s.11, ibid. (w.e.f. 24-8-2010)]._

**40.** _Procedure and powers of Appellate Tribunal. [Omitted by s.11, ibid. (w.e.f. 24-8-2010)]._


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**41.** _Distribution of business amongst Benches. [Omitted by s.11, ibid. (w.e.f. 24-8-2010)]._

**42.** _Power of Chairperson to transfer cases. [Omitted by s.11, ibid. (w.e.f. 24-8-2010)]._

**43.** _Decision to be by majority. [Omitted by s.11, ibid. (w.e.f. 24-8-2010)]._

**44. Right of appellant to take assistance of legal practitioner or accredited auditor and of**

**Government to appoint presenting officers.—(1) A person preferring an appeal to the Appellate**
Tribunal under this Act may either appear in person or take the assistance of a legal practitioner or an
accredited energy auditor of his choice to present his case before the Appellate Tribunal, as the case may
be.

(2) The Central Government or the State Government may authorise one or more legal practitioners

or any of its officers to act as presenting officers and every person so authorised may present the case
with respect to any appeal before the Appellate Tribunal, as the case may be.

**45. Appeal to Supreme Court.—Any person aggrieved by any decision or order of the Appellate**

Tribunal, may, file an appeal to the Supreme Court within sixty days from the date of communication of
the decision or order of the Appellate Tribunal to him, on any one or more of the grounds specified in
section 100 of the Code of Civil Procedure, 1908 (5 of 1908):

Provided that the Supreme Court may, if it is satisfied that the appellant was prevented by sufficient

cause from filing the appeal within the said period, allow it to be filed within a further period not
exceeding sixty days.

CHAPTER X

MISCELLANEOUS

**46. Power of Central Government to issue directions to Bureau.—(1) Without prejudice to the**

foregoing provisions of this Act, the Bureau shall, in exercise of its powers or the performance of its
functions under this Act, be bound by such directions on questions of policy as the Central Government
may give in writing to it from time to time:

Provided that the Bureau shall, as far as practicable, be given an opportunity to express its views

before any direction is given under this sub-section.

(2) The decision of the Central Government, whether a question is one of policy or not, shall be final.

**47. Power of Central Government to supersede Bureau.—(1) If at any time the Central**

Government is of opinion—

(a) that on account of grave emergency, the Bureau is unable to discharge the functions and

duties imposed on it by or under the provisions of this Act; or

(b) that the Bureau has persistently made default in complying with any direction issued by the

Central Government under this Act or in discharge of the functions and duties imposed on it by or
under the provisions of this Act and as a result of such default, the financial position of the Bureau
had deteriorated or the administration of the Bureau had deteriorated; or

(c) that circumstances exist which render it necessary in the public interest so to do, the Central

Government may, by notification, supersede the Bureau for such period, not exceeding six months, as
may be specified in the notification.

(2) Upon the publication of a notification under sub-section (1) superseding the Bureau,—

(a) all the members referred to in clauses (o), (p) and (q) of sub-section (2) of section 4 shall, as

from the date of supersession, vacate their offices as such;

(b) all the powers, functions and duties which may, by or under the provisions of this Act, be

exercised or discharged by or on behalf of the Bureau, shall until the Bureau is reconstituted under
sub-section (3), be exercised and discharged by such person or persons as the Central Government
may direct; and

(c) all property owned or controlled by the Bureau shall, until the Bureau is reconstituted under

sub-section (3), vest in the Central Government.


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(3) On the expiration of the period of supersession specified in the notification issued under

sub-section (1), the Central Government may reconstitute the Bureau by a fresh appointment and in such
case any person or persons who vacated their offices under clause (a) of sub-section (2), shall not be
deemed disqualified for appointment:

Provided that the Central Government may, at any time, before the expiration of the period of

supersession, take action under this sub-section.

(4) The Central Government shall cause a notification issued under sub-section (1) and a full report of

any action taken under this section and the circumstances leading to such action to be laid before each
House of Parliament at the earliest.

**48. Default by companies.—(1) Where a company makes a default in complying with the provisions**

of clause (c) or clause (d) or clause (h) or clause (i) or clause (k) or clause (l) or clause (n) or clause (r) or
clause (s) of section 14 or clause (b) or clause (c) or clause (h) of section 15, every person who at the time
of such contravention was in charge of, and was responsible to the company for the conduct of the
business of the company, as well as the company, shall be deemed to have acted in contravention of the
said provisions and shall be liable to be proceeded against and imposed penalty under section 26
accordingly:

Provided that nothing contained in this sub-section shall render any such person liable for penalty

provided in this Act if he proves that the contravention of the aforesaid provisions was committed without
his knowledge or that he exercised all due diligence to prevent the contravention of the aforesaid
provision.

(2) Notwithstanding anything contained in sub-section (1), where any contravention of the provisions

of clause (c) or clause (d) or clause (h) or clause (i) or clause (k) or clause (l) or clause (n) or clause (r) or
clause (s) of section 14 or clause (b) or clause (c) or clause (h) of section 15 has been committed with the
consent or connivance of, or is attributable to, any neglect on the part of, any director, manager, secretary
or other officer of the company, such director, manager, secretary or other officer shall also be deemed to
have contravened the said provisions and shall be liable to be proceeded for imposition of penalty
accordingly.

_Explanation.—For the purposes of this section, “company” means a body corporate and includes a_

firm or other association of individuals.

**49. Exemption from tax on income.—Notwithstanding anything contained in the Income-tax Act,**

1961 (43 of 1961) or any other enactment for the time being in force relating to tax on income, profits or
gains—

(a) the Bureau;

(b) the existing Energy Management Centre from the date of its constitution to the date of

establishment of the Bureau,

shall not be liable to pay any income-tax or any tax in respect of their income, profits or gains derived.

**50. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall**

lie against the Central Government or Director-General or Secretary or State Government or any officer
of those Governments 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 under this Act or the rules
or regulations made thereunder.

**51. Delegation.—The Bureau may, by general or special order in writing, delegate to any member,**

member of the committee, officer of the Bureau or any other person subject to such conditions, if any, as
may be specified in the order, such of its powers and functions under this Act (except the powers under
section 58) as it may deem necessary.

**52. Power to obtain information.—Every designated consumer or manufacturer of equipment or**

appliance [1][or any other person or entity covered under this Act shall furnish to the Bureau such
information, documents or records relating to energy consumption, and such samples] of any material or
substance used in relation to any equipment or appliance, as the Bureau may require.


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**53. Power to exempt.—If the Central Government or the State Government is of the opinion that it is**

necessary or expedient so to do in the public interest, it may, 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 Central Government or the State Government, as the case may be, shall not grant

exemption to any designated consumer or class of designated consumers for a period exceeding five
years:

Provided further that the Central Government or the State Government, as the case may be, shall

consult the Bureau of Energy Efficiency before granting such exemption.

**54. Chairperson, Members, officers and employees of the Appellate Tribunal, Members of State**

**Commission, Director-General, Secretary, members, officers and employees of the Bureau to be**
**public servants.—The** [1]*** members, Director-General, Secretary, officers and other employees of the
Bureau shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this
Act, to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860).

**55. Power of Central Government to issue directions.—The Central Government may give**

directions to a State Government or the Bureau as to carrying out into execution of this Act in the State.

**56. Power of Central Government to make rules.—(1) The Central Government may, by**

notification, make rules for carrying out the provisions of this Act.

(2) 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:—

(a) such number of persons to be appointed as members by the Central Government under

clauses (o), (p) and (q) of sub-section (2) of section 4;

(b) the fee and allowances to be paid to the members under sub-section (5) of section 4;

(c) 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 under
sub-section (4) of section 9;

(d) the terms and conditions of service of officers and other employees of the Bureau under

sub-section (2) of section 10;

(e) performing such other functions by the Bureau, as may be prescribed, under clause (u) of

sub-section (2) of section 13;

(f) the energy consumption norms and standards for designated consumers under clause (g) of

section 14;

(g) prescribing the different norms and standards for different designated consumers under the

proviso to clause (g) of section 14;

(h) the form and manner and the time within which information with regard to energy consumed

and the action taken on the recommendations of the accredited energy auditor be furnished under
clause (k) of section 14;

(i) the form and manner in which the status of energy consumption be submitted under clause (i)

of section 14;

(j) the minimum qualifications for [2][energy auditors and energy managers] under clause (m) of

section 14;

(k) the form and manner for preparation of scheme and its implementation under clause (o) of

section 14;

(l) the [3][energy conservation and sustainable building codes] under clause (p) of section 14;

1. Certain words omitted by Act of 28 of 2010, s. 12 (w.e.f. 24-8-2010).


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1[(la) prescribing the procedure for issuing the energy savings certificate under sub-section (1) of

section 14A;

(laa) the value of per metric ton of oil equivalent of energy consumed under section 14B;]

(m) the matters relating to inspection under sub-section (2) of section 17;

(n) the form in which, and the time at which, the Bureau shall prepare its budget under section 22;

(o) the form in which, and the time at which, the Bureau shall prepare its annual report under

section 23;

(p) the form in which the accounts of the Bureau shall be maintained under section 25;

(q) the manner of holding inquiry under sub-section (1) of section 27;

(r) the form and fee for filing appeal under sub-section (2) of section 31;

2*     -     -     -     
(v) 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.

**57. Power of State Government to make rules.—(1) The State Government may, by notification,**

make rules for carrying out the provisions of this Act and not inconsistent with the rules, if any, made by
the Central Government.

(2) 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:—

(a) [3][energy conservation and sustainable building codes] under clause (a) of section 15;

(b) the form, the manner and the period within which information with regard to energy

consumption shall be furnished under clause (h) of section 15;

4[(ba) the fee to be levied for the services rendered by the designated agency for promoting

efficient use of energy and its conservation under clause (ha) of section 15;

(bb) the form in which and the time at which, the budget of the designated agency shall be

prepared under section 15A;]

(c) the person or any authority who shall administer the Fund and the manner in which the Fund

shall be administered under sub-[5][section (3)] of section 16;

(d) the matters to be included for the purposes of inspection under sub-section (2) of section 17;

(e) 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.

**58. Power of Bureau to make regulations.—(1) The Bureau may, with the previous approval of the**

Central Government and subject to the condition of previous publication, by notification, make
regulations not inconsistent with the provisions of this Act and the rules made thereunder to carry out the
purposes of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may

provide for all or any of the following matters, namely:—

(a) the times and places of the meetings of the Governing Council and the procedure to be

followed at such meetings under sub-section (1) of section 5;

(b) the members of advisory committees constituted under sub-section (2) of section 8;

(c) the powers and duties that may be exercised and discharged by the Director-General of the

Bureau under sub-section (6) of section 9;

1. Ins. by Act 28 of 2010, s. 13, (w.e.f. 24-8-2010).
2. Cls. (s), (t) and (u) omitted by s. 13, ibid. (w.e.f. 24-8-2010).
3. Subs. by Act 19 of 2022, s. 17, for “energy conservation building codes” (w.e.f. 1-1-2023).


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(d) the levy of fee for services provided for promoting efficient use of energy and its conservation

under clause (n) of sub-section (2) of section 13;

(e) the list of accredited energy auditors under clause (o) of sub-section (2) of section 13;

1[(f) the qualifications, criteria and conditions subject to which a person may be accredited as an

energy auditor and the procedure for such accreditation under clause (p) of sub-section (2) of
section 13;]

(g) the manner and the intervals of time in which the energy audit shall be conducted under clause

(q) of sub-section (2) of section 13;

(h) certification procedure for [2][energy auditors and energy managers] under clause (r) of

sub-section (2) of section 13;

3[(ha) the purposes, and the terms and conditions subject to which, an agency may be authorised

to carry out the functions of the Bureau under clause (tb) of sub-section (2) of section 13;

(hb) the technical qualification to test samples under clause (tc) of sub-section (2) of section 13;]

(i) particulars required to be displayed on label and the manner of their display under clause (d) of

section 14;

(j) the manner and the intervals of time for conduct of energy audit under clause (h) or clause (s)

of section 14;

(k) the manner and the intervals of time for conducting energy audit by an accredited energy

auditor under clause (c) of section 15;

(l) any other matter which is required to be, or may be, specified.

**59. Rules and regulations to be laid before Parliament and State Legislature.—(1) Every rule**

made by the Central Government and every regulation made under this Act shall be laid, as soon as may
be after it is made, before each House of Parliament while it is in session, for a total period of thirty days
which may be comprised in one session or in two or more successive sessions, and if, before the expiry of
the session immediately following the session or the successive sessions aforesaid, both Houses agree in
making any modification in the rule or regulation, or both Houses agree that the rule or regulation should
not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no
effect, as the case may be; so, however, that any such modification or annulment shall be without
prejudice to the validity of anything previously done under that rule or regulation.

(2) Every rule made by the State Government shall be laid, as soon as 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.

**60. Application of other laws not barred.—The provisions of this Act shall be in addition to, and**

not in derogation of, the provisions of any other law for the time being in force.

**61. Provisions of Act not to apply in certain cases.—The provisions of this Act shall not apply to**

the Ministry or Department of the Central Government dealing with Defence, Atomic Energy or such
other similar Ministries or Departments or undertakings or Boards or institutions under the control of such
Ministries or Departments as may be notified by the Central Government.

**62. Power to remove difficulty.—(1) If any difficulty arises in giving effect to the provisions of this**

Act, the Central Government may, by order, published in the Official Gazette, make such provisions not
inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty:

Provided that no such order shall be made under this section after the expiry of two years from the

date of the commencement of this Act.

(2) Every order made under this section shall be laid, as soon as may be after it is made, before each

House of Parliament.

1. Subs. by Act 28 of 2010, s. 14, for clause (f) (w.e.f. 24-8-2010).


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THE SCHEDULE

[See section 2(s)]

LIST OF ENERGY INTENSIVE INDUSTRIES AND OTHER ESTABLISHMENTS [1]***

1. Aluminium;

2. Fertilizers;

3. Iron and Steel;

4. Cement;

5. Pulp and paper;

6. Chlor Alkali;

2[7. Sugar-Units of sugar plants or establishment those are under production of sugar and its variants

such as white sugar, brown sugar and liquid sugar;]

8. Textile;

3[9. Chemical-Units of such chemical plants or establishments those are under production of

chemicals with following sub-categories:

(i) Alkali Chemical (Soda Ash, Potassium Hydroxide);

(ii) Inorganic Chemicals;

(iii) Organic Chemicals;

(iv) Pesticides (Technical);

(v) Dyes and Pigments; and

(vi) Pharmaceuticals [Active Pharmaceutical Ingredients (API).]]

10. Railways;

11. Port Trust;

12. Transport Sector (industries and services);

13. Petrochemical, Gas Crackers, Naphtha Crackers and Petroleum Refineries;

14. Thermal power stations, hydel power stations, electricity transmission companies and distribution

companies;

15. Commercial buildings or establishments.

4[16. Ceramic- Units of such ceramic plants or establishments those are under production of vitrified

tiles, floor tile, wall tiles and sanitary ware etc., including all variants such as stoneware, porcelain and
fire bricks.

17. Glass- Units of such glass plants or establishments those are under production of glass and it’s

finished products.

18. Zinc- Units of such zinc plants or establishments those are under production of zinc and it’s

finished products.

19. Copper- Units of such copper plants or establishments those are under production of copper and

it’s finished products.

20. Mines including exploration-Units of such mines those are involved in surface, underground or

other category of mining of minerals as well as exploration of oil and natural gas.]

_____________

1. The words “specified as designated consumers” omitted by Act 28 of 2010, s. 15 (w.e.f. 24-8-2010).
2. Subs. by notification No. S.O. 09(E), dated 3-1-2022.


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