Explanation:

?? The Central Electricity Authority (CEA) is a statutory organization constituted under Section 3 (1) of the
repealed Electricity (Supply) Act, 1948 and continued under Section 70 of the Electricity Act, 2003. Hence
statement 1 is correct.
?? It was established as a part time body in 1951 and made a full time body in the year 1975. The authority
shall consist of not more than 14 members, including its chairperson of whom not more than eight shall be
full time members to be appointed by the Central Government.
?? The CEA is headed by a chairperson who, as the Chief Executive of the authority, oversees largely the
development of power sector in the country.
?? The Central Government shall, from time to time, prepare the National Electricity Policy and tariff policy,
in consultation with the State Governments and the Authority for development of the power system based
on optimal utilisation of resources such as coal, natural gas, nuclear substances or materials, hydro and
renewable sources of energy. Hence statement 3 is not correct.
o It advises the government on matters relating to the National Electricity Policy (NEP) and formulates
short-term and perspective plans for the development of electricity systems.
o The Authority shall prepare a National Electricity Plan in accordance with the National Electricity
Policy and notify such plan once in five years.
?? It is the designated authority for cross border trade of electricity. Hence statement 2 is correct.
?? It also prescribes the standards on matters such as construction of electrical plants, electric lines and
connectivity to the grid, safety and grid standards and installation and operation of meters.
?? It is also responsible for concurrence of hydro power development schemes of central, state and private
sectors for efficient development of river and its tributaries for power generation.