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The Govt. of India has enacted the Electricity Regulatory Commissions Act,1998 (No.14 of 1998) on 2nd July,1998 the provisions of which were repealed and reenacted by the Electricity Act, 2003(36 of 2003) with the objective of providing for the establishment of a Central Electricity Regulatory Commission and State Electricity Regulatory Commissions,rationalisation of electricity tariff,ensuring transparent policies,regulations,promotion of efficient and environmentally benign policies and for matters connected therewith or incidental thereto.