VidhiSangh

Supreme Court of India · 08/05/2026

INDIAN RAILWAYS versus WEST BENGAL STATE ELECTRICITY DISTRIBUTION COMPANY LIMITED & ORS.

[2026] 5 S.C.R. 479 · 2026 INSC 464

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Summary

Indian Railways is not a deemed distribution licensee under the third proviso to Section 14 of the Electricity Act, 2003, because it does not supply electricity to consumers in an area of supply; it buys power for its own use and is therefore a consumer liable to pay Cross-Subsidy Surcharge and Additional Surcharge when it takes open access. APTEL's judgment was upheld.

Issues

  1. Whether the powers under Section 11(g) and (h) of the Railways Act to erect and operate power supply and distribution installations amount to distribution of electricity, so as to make Indian Railways a deemed distribution licensee.
  2. Whether Indian Railways, as an entity of the Central Government, is an 'Appropriate Government' for the third proviso to Section 14 of the Electricity Act, 2003.
  3. Whether Indian Railways, even if a deemed distribution licensee, is exempt from Cross-Subsidy Surcharge and Additional Surcharge when it avails open access under Section 42.
  4. Whether a proposed amending Bill can be used as an aid to interpret the existing statute.

Provisions considered

Held

Result

Appeals dismissed and APTEL's judgment upheld. The distribution licensees were directed to compute the outstanding Cross-Subsidy Surcharge and Additional Surcharge by area of supply and period, give the Railways an opportunity to respond, and allow time for payment, subject to scrutiny by the Appropriate Commission. No order as to costs.

Judgment PDF: Supreme Court of India, [2026] 5 S.C.R. 479.