The surplus power from the States can be transferred to a power deficit State through the Inter-State Transmission System (ISTS) from the source of supply depending upon the available transfer capacity (ATC) between the point of supply and point of drawl. Open Access in transmission (introduced by the Central Government through Electricity Act, 2003), trading mechanism and Power Exchange in accordance with the relevant regulations notified by CERC facilitate this process. National Grid, for evacuation of power from generating sources located in different regions in the country and facilitating transfer of power from surplus to deficit regions, is in place. In addition, licenses have been granted for trading of power. Power exchanges have also been set up for facilitating transfer of power from surplus to deficit States. The surplus power available with the States is also supplied by the States to other needy and desirous States under bilateral arrangements.
Electricity being a concurrent subject, responsibility for supply of electricity lies with the concerned State Government / Power Utilities in the State. Therefore, it is the responsibility of power deficit States to assess and plan for adequate availability of power including import of power and accordingly seek inter-regional/ inter-state transmission access from the CTU/RLDC under the provisions of Open Access laid down in the Electricity Act,2003 and relevant regulations notified by CERC. Government of India only supplements the efforts of the State Governments by establishing power plants and bulk power transmission system in Central Sector through Central Public Sector Undertakings (CPSUs). Development of National Grid for optimum utilization of available power is a continuous process and Interregional transmission links and required generation capacity addition has been planned. The increased generation and the transmission capacity would help the deficit States in bridging the demand-supply gap.
The inter-regional/inter-state transmission corridors, which facilitate supply of surplus power -to power deficit States, are in larger interest of the nation.
Power System Development Fund (PSDF) has been constituted vide Central Electricity Regulatory Commission (Power System Development Fund) Regulations, 2010, which inter-alia may also be utilized for establishment of inter-state transmission network.