The Central
Government shall also formulate a national policy, in consultation with the State Governments and the
State Commissions, for rural electrification and for bulk purchase of power and management of local
distribution in rural areas through Panchayat Institutions, users associations, co-operative societies,
non-Governmental organisations or franchisees.
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Section 5
National Policy on Electrification and Local Distribution in Rural Areas.
The Electricity Act, 2003