THE ENERGY CONSERVATION ACT, 2001 
_____________ 

ARRANGEMENT OF SECTIONS 
_____________ 

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. 

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

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

CHAPTER III 

CHAPTER IV 

POWERS AND FUNCTIONS OF BUREAU 

13.  Powers and functions of 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. 
14A. Power of Central Government to issue energy savings 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. 

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

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CHAPTER VII 

FINANCE, ACCOUNTS AND AUDIT OF BUREAU 

SECTIONS 

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. 
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. 

THE SCHEDULE. 

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THE ENERGY CONSERVATION ACT, 2001 

ACT NO. 52 OF 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:— 

[29th September, 2001.] 

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  date2  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[(c)  “building”  means  any  structure  or  erection  or  part  of  structure  or  erection  after  the  rules 
relating to energy conservation building codes have been notified under clause (p) of section 14 and 
clause (a) of section 15 and includes any existing structure or erection or part of structure or erection, 
which is having a connected load of 100 Kilowatt (kW) or contract demand of 120 Kilo-volt Ampere 
(kVA) and above and is used or intended to be used for commercial purposes;] 

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

section 3; 

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

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

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

(h) “energy” means any form of energy derived from fossil fuels, nuclear substances or materials, 
hydro-electricity  and  includes  electrical  energy  or  electricity  generated  from  renewable  sources  of 
energy or bio-mass connected to the grid; 

(i)  “energy  audit”  means  the  verification,  monitoring  and  analysis  of  use  of  energy  including 
submission  of   technical  report  containing  recommendations  for  improving  energy  efficiency  with 
cost benefit analysis and an action plan to reduce energy consumption; 

(j) “energy conservation building codes” means the norms and standards of energy consumption 
expressed in terms of per square metre of the area wherein energy is used and includes the location of 
the building; 

(k)  “energy  consumption  standards”  means  the  norms  for  process  and  energy  consumption 

standards specified under clause (a) of section 14; 

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). 

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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(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; 

1[(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; 

(r) “regulations” means regulations made by the Bureau under this Act; 

(s) “Schedule” means the Schedule to this Act; 

(t)  “State  Commission”  means  the  State  Electricity  Regulatory  Commission  established  under 

sub-section (1) of section 17 of the Electricity Regulatory Commissions Act, 1998 (14 of 1998); 

(u) words and expressions used and not defined in this Act but defined in the Indian Electricity 
Act, 1910 (9 of 1910) or the Electricity (Supply) Act, 1948 (54 of 1948) or the Electricity Regulatory 
Commissions Act, 1998 (14 of 1998) shall have the meanings respectively assigned to them in those 
Acts. 

CHAPTER II 

BUREAU OF ENERGY EFFICIENCY 

3. Establishment and incorporation of Bureau of Energy Efficiency.—(1) With effect from such 
date as the Central Government may, by notification, appoint, there shall be established, for the purposes 
of this Act, a Bureau to be called the Bureau of Energy Efficiency. 

(2) The Bureau shall be a body corporate by the name aforesaid having perpetual succession and a 
common seal, with power subject to the provisions of this Act, to acquire, hold and dispose of property, 
both movable and immovable, and to contract, and shall, by the said name, sue or be sued. 

(3) The head office of the Bureau shall be at Delhi. 

(4) The Bureau may establish offices at other places in India. 

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 twenty, but 
not exceeding twenty-six, members to be appointed by the Central Government. 

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

(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 

ex officio Chairperson; 

ex officio member; 

ex officio member; 

1. Ins. by Act of 28 of 2010, s. 2 (w.e.f. 24-8-2010). 

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(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 

(h)  Chairman  of 

the  Central  Electricity  Authority 
established  under  the  Electricity  (Supply)  Act,  1948 
(54 of 1948) 

(i)  Director-General  of  the  Central  Power  Research 
Institute registered under the Karnataka Societies Act, 
1960 (Karnataka Act 17 of 1960) 

(j)  Executive  Director  of  the  Petroleum  Conservation 
Research  Association,  a  society  registered  under  the 
Societies Registration Act, 1860 (XXI of 1860) 

(k) Chairman-cum-Managing Director of the Central Mine 
Planning  and  Design  Institute  Limited,  a  company 
incorporated  under 
(1 of 1956) 

the  Companies  Act,  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 

(n)  Managing  Director  of  the  Indian  Renewable  Energy 
company 

Limited, 

a 

Development  Agency 
incorporated  under 
(1 of 1956) 

the  Companies  Act,  1956                       

ex officio member; 

ex officio member; 

ex officio member; 

ex officio member; 

ex officio member; 

ex officio member; 

ex officio member; 

ex officio member; 

ex officio member; 

ex officio member; 

ex officio member; 

(o)  one  member  each  from  the  five  power  regions 
representing the States of the region to be appointed 
by the Central Government 

(p) such number of persons, not exceeding four as may be 
prescribed, to be appointed by the Central Government 
as  members  from  amongst  persons  who  are  in  the 
the  Central  Government  capable  of 
opinion  of 
representing 
industry,  equipment  and  appliance 
manufacturers, architects and consumers 

member; 

member; 

(q) such number of persons, not exceeding two as may be 
nominated by the Governing Council as members 

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. 

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(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. 

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. 

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(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; 

(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. 

1. Subs. by Act 28 of 2010 s. 3, for “three years” (w.e.f. 24-8-2010). 
2. Subs. by s. 4, ibid., for “The Central Government” (w.e.f. 24-8-2010). 

7 

 
                                                           
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[(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 energy conservation building codes under clause 

(p) of section 14; 

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

of energy and its conservation; 

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

energy and its conservation; 

(g) strengthen consultancy services in the field of energy conservation; 

(h) promote research and development in the field of energy conservation; 

(i) develop testing and certification procedure and promote testing facilities for certification and 

testing for energy consumption of equipment and appliances; 

(j)  formulate  and  facilitate  implementation  of  pilot  projects  and  demonstration  projects  for 

promotion of efficient use of energy and its conservation; 

(k) promote use of energy efficient processes, equipment, devices and systems; 

(l) promote innovative financing of energy efficiency projects; 

(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; 
2[(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 3[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; 

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

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

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

8 

 
                                                           
(t)  implement  international  co-operation  programmes  relating  to  efficient  use  of  energy  and  its 

conservation as may be assigned to it by the Central Government; 

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

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,— 

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

appliance which consumes, generates, transmits or supplies energy; 

(b) specify equipment or appliance or class of equipments or appliances, as the case may be, for 

the purposes of this Act; 

(c) prohibit manufacture or sale or purchase or import of equipment or appliance specified under 

clause (b), unless such equipment or appliance conforms to energy consumption standards: 

1[Provided  that  no  notification  prohibiting  manufacture  or  sale  or  purchase  or  import  of 
equipment  or  appliance  shall  be  issued  within  a  period  of  six  months  from  the  date  of  notification 
issued under clause (a) of this section: 

Provided  further  that  the  Central  Government  may,  having  regard  to  the  market  share  and  the 
technological development having impact on equipment or appliance, and for reasons to be recorded 
in writing, extend the said period of six months referred to in the first proviso by a further period not 
exceeding six months;] 

(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, 
2[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 specified in the Schedule; 

(g)  establish  and  prescribe  such  energy  consumption  norms  and  standards  for  designated 

consumers as it may consider necessary: 

Provided that the Central Government may prescribe different norms and standards for different 

designated consumers having regard to such factors as may be prescribed; 

(h)  direct,  having  regard to  quantity  of  energy  consumed  or  the norms  and  standards  of  energy 
consumption specified under clause (a), the Energy Intensive Industries specified in the Schedule to 
get energy audit conducted by an accredited energy auditor in such manner and intervals of  time as 
may be specified by 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 energy manager in charge of activities 
for efficient use of energy and its conservation and submit a report, in the form and manner as may be 

1. Subs. by Act 28 of 2010, s. 6, for the proviso (w.e.f. 24-8-2010). 
2. Subs. by s. 6, ibid., for “any user or class of users of energy as a designated consumer” (w.e.f. 24-8-2010). 

9 

 
                                                           
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 energy conservation building codes for efficient use of energy and its conservation 

in the building or building complex; 

(q)  amend  the  energy  conservation  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  energy  conservation  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: 

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

State. 

3[14A.  Power  of  Central  Government  to  issue  energy  savings  certificate.—(1)  The  Central 
Government  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. 

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  energy  conservation  building  codes  to  suit  the  regional  and  local  climatic 
conditions and may, by rules made by it, specify and notify energy conservation building codes with 
respect to use of energy in the buildings; 

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. Ins. by s. 7, ibid. (w.e.f. 24-8-2010). 

10 

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

to comply with the provisions of the energy conservation 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; 

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

section 17. 

16.  Establishment  of  Fund  by  State  Government.—(1)  The  State  Government  shall  constitute  a 
Fund to be called the State Energy Conservation Fund for the purposes of promotion of efficient use of 
energy and its conservation within the State. 

(2) To the Fund shall be credited all grants and loans that may be made by the State Government or, 

Central Government or any other organisation or individual for the purposes of this Act. 

(3) The Fund shall be applied for meeting the expenses incurred for implementing the provisions of 

this Act. 

(4) The Fund created under sub-section (1) shall be administered by such persons or any authority and 

in such manner as may be specified in 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; 

11 

 
 
 
(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 
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). 

12 

 
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. 

(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 

26.  Penalty.—(1)  If  any  person  fails  to  comply  with  the  provisions  of  clause  (c)  or  clause  (d)  or 
clause (h) or clause (i) or clause (k) or clause (l) 1*** 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  2[ten lakh 
rupees] for each such failure and, in the case of continuing failure, with an additional penalty which may 
extend to 3[ten thousand rupees] for every day during which such failure continues: 

Provided  that  no  person  shall  be  liable  to  pay  penalty  within  five  years  from  the  date  of 

commencement of this Act. 

4[(1A) If any person fails to comply with the provisions of clause (n) of section 14, he shall be liable 
to  a  penalty  which  shall  not  exceed  ten  lakh  rupees  and,  in  the  case  of  continuing  failure,  with  an 
additional penalty which shall not be less than the price of every metric ton of oil equivalent of energy, 
prescribed under this Act, that is in excess of the prescribed norms.] 

(2) 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 
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 

1. The words, brackets and letter “or clause (n)” omitted by Act of 28 of 2010, s. 8 (w.e.f. 24-8-2010). 
2. Subs. by s. 8, ibid., for “ten thousand rupees” (w.e.f. 24-8-2010). 
3. Subs. by s. 8, ibid., for “one thousand rupees” (w.e.f. 24-8-2010). 
4. Ins. by s. 8, ibid. (w.e.f. 24-8-2010). 

13 

 
                                                           
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. 

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. 

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 

1[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.] 

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. 

1. Subs. by Act 28 of 2010, s. 9, for section 30 (w.e.f. 24-8-2010). 

14 

 
                                                           
(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)]. 

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  

1. Ins. by Act 28 of 2010, s. 10 (w.e.f. 24-8-2010). 

15 

 
 
                                                           
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. 

(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 

16 

 
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 specified under clause (b) of section 14 shall supply the Bureau with such information, and with 
such samples of any material or substance used in relation to any equipment or appliance, as the Bureau 
may require. 

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). 

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

17 

 
                                                           
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  1[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 energy conservation building codes under clause (p) of section 14; 

2[(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; 

3* 

* 

* 

* 

* 

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

18 

 
 
 
 
 
 
 
 
 
                                                           
(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) energy conservation 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; 

(c) 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; 

(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; 

(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; 

(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 

1. Subs. by Act 28 of 2010, s. 14, for clause (f) (w.e.f. 24-8-2010). 
2. Subs. by s. 14, ibid., for “energy managers” (w.e.f. 24-8-2010). 

19 

 
                                                           
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. 

20 

 
 
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.  Chemicals-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 of 28 of 2010, s. 15 (w.e.f. 24-8-2010). 
2. Subs. by notification No. S.O. 09(E), dated 3-1-2022. 
3. Subs. by notification No. S.O. 09(E), dated 3-1-2022. 
4. Ins. by notification No. S.O. 09(E), dated 3-1-2022. 

21 

 
                                                           
