Home >Articles & Publications>Article>Supreme Court Of India Holds That The Indian Railways Is Not A Deemed Distribution Licensee Under The Electricity Act, 2003

Supreme Court Of India Holds That The Indian Railways Is Not A Deemed Distribution Licensee Under The Electricity Act, 2003

High-voltage power transmission towers with dynamic neon light trails and an energy pulse symbol at night.

The Supreme Court, in Indian Railways v. West Bengal State Electricity Distribution Company Ltd. (May 2026), ruled that Indian Railways is not a deemed distribution licensee under the Electricity Act, 2003. The Court held that Railways uses electricity solely for its own operations and does not supply power to consumers, a key requirement for distribution licensee status. Consequently, Railways remains a consumer of electricity and must pay Cross-Subsidy Surcharge (CSS) and Additional Surcharge (ASC) when procuring power through open access. The judgment strengthens the financial stability of distribution companies and clarifies the scope of deemed licensee status.

Please click here to read the full article by Anupam Varma, Partner, Nikhil Sharma, Partner, Rahul Kinra, Partner, and Shivali Rawat, Associate, published in Mondaq.

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Anupam Varma Partner

Anupam specializes in Dispute Resolution and is advises on Regulatory and Policy issues relating to the Energy sector.
Nikhil Sharma Partner

Nikhil’s key focus area is Disputes. He has extensive experience in evaluation of regulatory and legal framework to facilitate compliance; providing strategic advice on processes to mitigate risks; conducting matters before Supreme Court, High Court of Delhi, District Courts, Municipal Taxation Tribunal and various statutory authorities.
Rahul Kinra Partner

Rahul is a part of the Disputes team at JSA. He primarily focuses on regulatory proceedings before statutory authorities, tribunals and courts.

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