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Incorporating a thorough, authoritative and exhaustive commentary on the Electricity Act, 1910, the Electricity (Supply) Act, 1948 and the Electricity Rules, 1956, this is a standard work on the subject. These Acts have been amended significantly by Electricity Laws (Amendment) Act, 1998 (Act 22 of 1998) and Electricity Regulatory Commission Act, 1998. The author has incorporated all these changes in this book. With the growing industrial activity in the country, the case-law in this field has increased tremendously. The revising author has made a thorough study of the entire case-law available and incorporated it at the relevant places.
Key Features
Electricity Act, 1910
Electricity (Supply) Act, 1948
Electricity Rules, 1956Â
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TABLE OF CASES XXXI
PREAMBLE 1
Short title, extent and commencement 7 Definitions 8
Grant of licences 32 State Amendments Maharashtra and Gujarat 34 Maharashtra 34 Uttar Pradesh 35 Revocation or amendment of licences 44 State Amendments Uttar Pradesh 46 Amendment of licences 57 Provisions where licence of a licensee is revoked 60 State Amendments Assam 62 Bihar 62 Gujarat 63 Haryana 63 Madhya Pradesh 63 Maharashtra and Gujarat 63 Maharashtra 64 Uttar Pradesh 65 Purchase of undertakings 72 State Amendments Assam 73 Bihar 74 Gujarat 75 Haryana 76 Madhya Pradesh 78 Maharashtra 79 Punjab 80 Uttar Pradesh 81 Revocation of licences and acquisition of undertaking Vesting of the undertaking in the purchaser 94 State Amendments Bihar 94 Gujarat 95 Haryana 95 Madhya Pradesh 95 Maharashtra 95 Uttar Pradesh 95 Determination of purchase price 100 State Amendments Assam 101 Bihar 102 Gujarat 103 Haryana 104 Madhya Pradesh 107 Maharashtra 109 Uttar Pradesh 112 Power to take forcible delivery of possession of undertaking State Amendments Gujarat 122 Uttar Pradesh 123 Special provision for safeguarding the interest of the employees State Amendments West Bengal 124 Provisions where no purchase and licence revoked with consent of licensee 127 Licensee not to purchase, or associate himself with, other licensed undertakings or transfer his undertaking 128 General power for Government to vary terms of purchase 132 Annual accounts of licensee 133
Provisions as to the opening and breaking-up of streets, railways and tramways 137 Notice of new works 148 Alteration of pipes or wires 156 Laying of electric supply-lines or other works near sewers, pipes or other electric supply-lines or works 162 Streets, railways, tramways, sewers, drains or tunnels broken up to be reinstated without delay 168 Notice to telegraph-authority 172 Overhead lines 175 State Amendments Gujarat 176 Maharashtra 176 Compensation for damage 180
Point where supply is delivered 183 Power for licensee to enter premises and to remove fittings or other apparatus of licensee 184 State Amendments Haryana 185 Tamil Nadu 186 Restrictions on licensee's controlling or interfering with use of energy 191 Obligation on licensee to supply energy 198 Powers of State Government to give direction to a licensee in regard to the supply of energy to certain class of consumers 206 Power to control the distribution and consumption of energy 213 State Amendments Uttar Pradesh 214 Charges for energy to be made without undue preference 220 Discontinuance of supply to consumer neglecting to pay charge 225 State Amendments Haryana 226 Tamil Nadu 226 West Bengal 227 Bar to jurisdiction of court etc. State Amendments West Bengal 245 Exemption of electric supply-lines or other apparatus from attachment in certain cases 245 Meters 247 State Amendments West Bengal 249 Supply of energy outside area of supply 264
Central Transmission Utility 267 State Transmission Utility 267 Grant of transmission license by the Central Government 268 Grant of transmission license by the State Government 269 Modified application of certain sections to transmission license and transmission licensee 270 Laying of certain notification and order, etc. 270 Grant of Transmission License Power of State Government to make rules State Amendments Karnataka 274
Sanction required by non-licensees in certain cases 275 State Amendments Uttar Pradesh 276 Purchase price of undertaking of sanction-holder purchased according to sanction State Amendments Gujarat 281 Revocation of sanction given under Section 28 State Amendments Uttar Pradesh 282 Power for non-licensees to break up streets 282 Application of Section 18 to overhead lines maintained by railways 285 Control of transmission and use of energy 286 State Amendments Karnataka 288
Protective clauses Protection of railways and canals, docks, wharves and piers 293 Protection of telegraphic, telephonic and electric-signalling lines 295 Notice of accidents and inquiries 299 Prohibition of connection with earth, and power for Government to interfere in certain cases of default 304
Advisory Boards 310 Appointment of Electrical Inspectors 313 State Amendments West Bengal 313 Central Electricity Board 318 [Deleted ] 321 Power for Board to make rules 321 Power of State Government to establish bodies for licensing purpose State Amendments Andhra Pradesh 324 Further provisions respecting rules 324
Theft of energy 327 State Amendments Haryana 328 Tamil Nadu 328 Uttar Pradesh 328 West Bengal 330 Abetment 340 State Amendments Haryana 340 Tamil Nadu 340 Power to enter premises etc. for search and seizure Unauthorised reconnection of electric supply-line State Amendments West Bengal 341 Penalty for maliciously wasting energy or injuring works 341 Penalty for unauthorised supply of energy by non-licensees 344 Penalty for unauthorised transmission of energy 345 Penalty for illegal or defective supply or for non-compliance with order 346 State Amendments Uttar Pradesh 347 West Bengal 348 Penalty for refusal or failure to deliver possession of ndertaking or its property and for obstructing the taking of possession thereof State Amendments Gujarat 350 Penalty for damaging or removing etc., any part of undertaking after service of notice under Section 6 or for furnishing false information State Amendments Uttar Pradesh 351 Penalty for refusal or failure to deliver possession of undertaking or its property and for obstructing the taking of possession thereof State Amendments Uttar Pradesh 351 Penalty for illegal transmission or use of energy 352 Penalty for interference with meters of licensee's works and for improper use of energy 353 State Amendments Haryana 354 Tamil Nadu 355 Uttar Pradesh 356 West Bengal 356 Abetment State Amendments Haryana 359 Penalty for extinguishing public lamps 360 Penalty for negligently wasting energy or injuring works 361 Penalty for offences not otherwise provided for 361 State Amendments Tamil Nadu 362 Penalties not to affect other liabilities 365 State Amendments Tamil Nadu 365 Penalties where works belong to Government 367 State Amendments Haryana 367 Tamil Nadu 367 Offences by companies 367 Certain offences to be cognizable and non-bailable State Amendments Uttar Pradesh 372 Institution of prosecutions 372 State Amendments Uttar Pradesh 372 Certain offences to be cognizable Summary trial State Amendments Haryana 379 Certain offences under the Act to be cognizable State Amendments Tamil Nadu 379 Offences to be cognizable State Amendments West Bengal 379
Exercise in certain cases of powers of telegraph authority 379 State Amendments Karnataka 380 State Government to have powers and obligations of licensee under this Act 390 Arbitration 391 Service of notices, orders or documents 401 Recovery of sums recoverable under certain provisions of Act 403 State Amendments Karnataka 404 Maharashtra and Gujarat 404 Delegation of certain functions of State Government to Electrical Inspectors 406 Protection for Acts done in good faith 407 Amendment of the Land Acquisition Act, 1894 410 Repeals and savings 412 THE SCHEDULE-Provisions to be deemed to be incorporated with, and to form part of, every licence granted under Part II, so far as not added to, varied or excepted by the licence 413
PREAMBLE 453
Short title, extent and commencement 454 State Amendments Pondicherry 455 Interpretation 457
Constitution of the Central Electricity Authority 472 Power to require accounts, statistics and returns 478 Directions by Central Government to the Authority 479 Power of Central Government to make rules 479 Power of Authority to make regulations 481
Constitution and composition of State Electricity Boards 482 State Amendments Himachal Pradesh 483 Inter-State agreement to extend Board's jurisdiction to another State 487 State Amendments Pondicherry 487 Effect of inter-State agreement 488 State Amendments Pondicherry 488 Term of office and conditions for re-appointment of members of the Board 489 State Amendments Karnataka 489 Members not to hold interest in certain concerns 489 Removal or suspension of members 491 Power of State Government to declare certain transactions void 495 Temporary absence of members 496 Incorporation of Board 497 Board may have capital structure 499 Authentication of orders and other instruments of the Board 499 Meetings of the Board 499 Appointment of staff 500 State Amendments Uttar Pradesh 500 Objects, jurisdiction etc., of Generating Companies 505 State Electricity Consultative Council 507 Local Advisory Committee 510
General duties of the Board 511 Duties of Generating Company 514 Powers of the Board to supply electricity 515 Power to Board to engage in certain undertakings 519 Leasing out, etc., of generating stations 520 Powers of Board in relation to water-power 521 Power to Board to conduct investigations 522 Loans by Board to licensees 522 Power to Board to contribute to certain associations 523 Consulting engineers 523 Board to have powers and obligations of licensee under Act 9 of 1910 523 Applicability of the provisions of Act 9 of 1910 to Generating Company 529 Other functions of the Board 532 State Amendments Punjab, Haryana and Chandigarh 532
Preparation and sanctioning of schemes 533 Submission of schemes for concurrence of Authority, etc. 535 Matters to be considered by the Authority 538 Concurrence of Authority to scheme submitted to it by Board or Generating Company 540 Power to alter or extend schemes 542 Provisions applicable to scheme prepared by State Government 543 Controlled stations 543 Supply by the Board to licensees owning generating stations 545 Power to Board to close down generating stations 546 Purchase of generating stations or undertakings or main transmission lines by the Board 548 [Provision of new generating stations] [Omitted ] 552 Operation of Board's generating stations 552 Provision regarding connections with main transmission lines purchased by the Board 554 Use of transmission lines 555 State Amendments Karnataka 555 Powers to Board for placing wires, poles, etc. 558 Power to Board to enter into arrangement for purchase or sale of electricity under certain conditions 562 Terms, conditions and tariff for sale of electricity by Generating Company 564 Restriction on establishment of new generating stations or major additions or replacement of plant in generating stations 569 Power to Board to enter upon and shut down generating stations in certain circumstances 577 The Grid Tariff 580 Power to Board to make alternative arrangements with licensees 584 Security State Amendments Uttar Pradesh 585 Power to licensee to carry out arrangements under this Act 586 Provision for the sale of electricity by the Board to persons other than licensees 586 State Amendments Karnataka 587 Kerala 588 West Bengal 588 Power of the Board to revise certain tariffs State Amendments Orissa 614 Rajasthan 615 Validation of certain tariffs etc. Price for supply of electricity Recovery of dues as public demand in certain circumstances State Amendments West Bengal 616 Board not to supply electricity in certain circumstances 617 Provisional payments 618 Lower limit of power factor in supply by Board 619 Provision of accommodation and right of way 620 Power to Board to connect meters, etc., to apparatus of licensees 620 Compliance of directions of the Regional Electricity Board, etc., by licensees or generating companies 621 State Amendments Karnataka 623 Leases of generating stations 626 Licensee's charges to consumers 627 Rating committees 634 Power of rating committee to call for information, etc. 645 Power to direct amortisation and tariffs policies of licensees being local authorities 645
General principles for Board's Finance 647 Board to assume obligations of State Government in respect of matters to which this Act applies 650 State Amendments Punjab, Haryana and Chandigarh 651 Uttar Pradesh 651 Period of limitation extended in certain cases 657 Annual financial statement 659 Restriction on unbudgeted expenditure 660 Subventions to the Board 661 Loans to the Board 661 Power of Board to borrow 661 Guarantee of loans 663 Conversion of amount of loans into capital 664 Priority of liabilities of the Board 665 Interest on loans advanced by State Government to be paid only after other expenses 666 Charging of depreciation by Board 667 Accounts and audit 668
Effect of other laws 670 [Rights and options to purchase under Act 9 of 1910 to vest in Board] [Repealed ] 672 Water-power concessions to be granted only to the Board or a Generating Company 672 Co-ordination between the Board's schemes and multi-purpose schemes 672 Powers of entry 672 Annual reports, statistics and returns 673 Annual reports and accounts of Generating Company 675 Arbitration 676 Penalties 685 Source from which fines may be paid 688 Offences by companies 688 Cognizance of offences 689 Power to make rules 693 State Amendments Karnataka 694 Directions by the State Government 694 Power to make regulations 698 State Amendments Uttar Pradesh 699 Laying of notification before the State Legislature 707 Provision relating to income-tax and super-tax 708 [Members and officers and other employees] of the Board to be public servants 708 Protection to persons acting under this Act 710 Mode of proof of documents of the Board State Amendments Uttar Pradesh 712 Saving of application of Act 712 THE FIRST SCHEDULE 713 THE SECOND SCHEDULE 726 THE THIRD SCHEDULE 727 THE FOURTH SCHEDULE 732 THE FIFTH SCHEDULE 733 THE SIXTH SCHEDULE 735 State Amendments West Bengal 742 THE SEVENTH SCHEDULE [Omitted] 754 THE EIGHTH SCHEDULE 755 THE NINTH SCHEDULE 756
Short title and commencement 759 Definitions 759 Authorization 763
Qualifications of Inspectors 765 Appointment of officers to assist the Inspectors 766 Qualifications of officers appointed to assist the Inspectors 766 Entry and inspection 767 Appeals 767 Amount of fees 768 Incidence of fees recoverable in the cases of dispute 768 Submission of records 768 List of consumers 769
Application for licence 769 Copies of maps and draft licence for public inspection 770 Contents of draft licence 770 Form of draft licence 770 Advertisement of application and contents thereof 771 Amendment of draft licence 771 Local inquiries 771 Approval of draft licence 771 Notification of grant of licence 771 Date of commencement of licence 772 Deposit of maps 772 Deposit of printed copies 772 Application for written consent of State Government in certain cases 772 Amendment of licence 772 Sale of plans 773 Preparation and submission of accounts 773 Model conditions of supply 773 Forms of requisitions 773
Construction, installation, protection, operation and maintenance of electric supply lines and apparatus 774 Service lines and apparatus on consumer's premises 774 Cut-out on consumer's premises 775 Identification of earthed and earthed neutral conductors and position of switches and cut-outs therein 775 Earthed terminal on consumer's premises 776 Accessibility of bare conductors 777 Danger notices 777 Handling of electric supply lines and apparatus 777 Supply to vehicles, cranes, etc. 778 Cables for portable or transportable apparatus 778 Cables protected by bituminous materials 778 Street boxes 779 Distinction of different circuits 779 Distinction of the installations having more than one feed 779 Accidental charge 779 Provisions applicable to protective equipment 779 Instructions for restoration of persons suffering from electric shock 780 Intimation of Accident 781 Precautions to be adopted by consumers, owners, occupiers, electrical contractors, electrical workmen and suppliers 781 Periodical inspection and testing of consumer's installation 783
Testing of consumer's installation 784 Precautions against leakage before connection 785 Leakage on consumer's premises 785 Supply and use of energy 785 Additional provisions for supply and use of energy in multi-storeyed buildings (more than 15 metres in height) 787 Provisions applicable to medium, high or extra-high voltage installations 787 Appeal to Inspector in regard to defects 789 Cost of inspection and test of consumer's installation 789 Declared voltage of supply to consumer 789 Declared frequency of supply to consumer 790 Sealing of meters and cut-outs 790 Meters, maximum demand indicators and other apparatus on consumer's premises 790 Point of commencement of supply 791 Precautions against failure of supply: Notice of failures 791
Test for resistance of insulation 792 Connection with earth 792 Earth leakage protective device 794 Systems at medium voltage 794
Approval by Inspector 795 Use of energy at high and extra-high voltage 795 Additional provisions for use of energy at high and extra-high voltage 798 Testing, Operation and Maintenance 799 Metal sheathed electric supply lines: Precautions against excess leakage 799 Connection with earth 800 General conditions as to transformation and control of energy 801 Pole type sub-stations 801 Condensers 802 Additional provisions for supply to high voltage luminous tube sign installation 802 Additional provisions for supply to high voltage electrode boilers 803 Supply to X-Ray and high frequency installation 803
Material and strength 805 Joints 806 Maximum stresses: Factors of safety 806 Clearance above ground of the lowest conductor 807 Clearance between conductors and trolley wires 807 Clearance from buildings of low and medium voltage lines and service lines 808 Clearance from buildings of high and extra-high voltage lines 808 Conductors at different voltages on same supports 809 Erection of or alteration to buildings, structures, flood banks and elevation of roads 809 Transporting and Storing of material near over-head lines 810 Clearances: General 810 Routes: Proximity to aerodromes 811 Maximum intervals between supports 811 Conditions to apply where telecommunication lines and power lines are carried on same supports 811 Lines crossing or approaching each other 812 Guarding 813 Service-lines from over-head lines 814 Earthing 814 Safety and protective devices 815 Protection against lightning 816 Unused over-head lines 816
Additional rules for electric traction 816 Voltage of supply to vehicle 817 Insulation of lines 817 Insulation of returns 817 Proximity to metallic pipes, etc. 817 Difference of potential on return 817 Leakage on conduit system 817 Leakage on system other than conduit system 818 Passengers not to have access to electric circuit 818 Current density in rails 818 Isolation of sections 818 Minimum size and strength of trolley-wire 818 Height of trolley-wire and length of span 818 Earthing of guard wires 818 Proximity to magnetic observatories and laboratories 819 Records 819
Application of Chapter 819 Responsibility for observance 820 Notices 820 Plans 821 Lighting, communications and fire precautions 821 Isolation and fixing of transformer, switchgear etc. 821 Method of earthing 821 Protective equipment 822 Earthing metal, etc. 822 Voltage Limits 822 Transformers 823 Switchgear and terminals 823 Disconnection of supply 823 Cables 824 Flexible cables 825 Portable and transportable machines 826 Sundry precautions 827 Precautions where gas exists 827 Shot-firing 830 Signalling 830 Haulage 831 Earthing of neutral points 831 Supervision 831 Exemptions 832
Relaxation by Government 832 Relaxation by Inspector 832 Supply and use of energy by non-licensees and others 833 Responsibility of Agents and Managers 833 Mode of entry 833 Penalty for breaking seal 833 Penalty for breach of Rule 44-A 833 Penalty for breach of Rule 45 833 Penalty for breach of Rule 82 834 Penalty for breach of Rules 77, 79 or 80 834 Penalty for breach of rules 834 Application of rules 834 Repeal 834
ANNEXURE I -Specification relating to the deposition of Silver [Rule 2(1)] 835 ANNEXURE II -Scale of fees for comparison with the Govt of India standards referred to in Rule 2(1) [Rule 7(1)] 835 ANNEXURE III -Model Form of Draft Licence under the Indian Electricity Act, 1910 [Rule 14] 835 ANNEXURE IV -Summary of Technical and Financial Particulars [Rule 26(3)] 839 ANNEXURE V -Model Form of Accounts [Section 11 and Rule 26(3)] 842 No I -Statement of Share and Loan Capital for the year ended 31st March, 19 842 No I-A(1) -Statement of Loans raised and redeemed for the year ended 31st March, 19 844 No I-A(2) -Statement of Loan and other capital for the year ended 31st March, 19 845 No II -Statement of Capital Expenditure for the year ended 31st March, 19 845 No II-A -Statement showing the written-down cost of fixed assets retired on account of Obsolescence, Inadequacy, Superfluity, etc. 849 No III -Statement of operating revenues for the year ended 31st March, 19 850 No IV -Statement of operating expenses for the year ended 31st March, 19 851 No V -Statement of provision for depreciation for the year ended 31st March, 19 860 No VI -Statement of contingencies reserve for the year ended 31st March, 19 861 No VII -Statement of development reserve account for the year ended 31st March, 19 862 No VIII -Statement of tariffs and dividends control reserve account for the year ended 31st March, 19 863 No IX -Statement of consumers' rebate reserve account for the year ended 31st March, 19 863 No X -Statement of special appropriations permitted by State Government for the year ended 31st March, 19 863 No XI -Statement of Net Revenue and Appropriations Account for the year ended 31st March, 19 864 No XII -General Balance Sheet as on 31st March, 19 866 ANNEXURE VI -Model Form of Draft Conditions of Supply 868 ANNEXURE VII -Form of requisition under Clause V(4) of the Schedule to the Act 879 ANNEXURE VIII -Form of requisition for supply of energy under Clause VI(5) of the Schedule of the Act 879 ANNEXURE IX -Form of Order under Rule 5(4) or Rule 46(2) 881 ANNEXURE IX-A -Model Forms of Inspection Report [Rule 46] 882 ANNEXURE X -Form of Annual Return of Mines [Rule 111] 893 ANNEXURE XI -Form of Annual Return for Oilfields [Rule 111] 894 ANNEXURE XII -Log sheet for Mines and Oilfields [Rule 131 (5)] 896 ANNEXURE XIII -Form for Reporting Electrical Accidents [Rule 44-A] 896 ANNEXURE XIV -Guidelines for providing training as required under Rule 3(2-A), Syllabus and Courses 897
Short title, extent and commencement 919 Definitions 919
Establishment and incorporation of Central Commission 920 Qualifications for appointment of Chairperson and other Members of Central Commission 921 Constitution of Selection Committee to recommend Members 921 Term of office, salary and allowances and other conditions of service of Chairperson and Members 922 Removal of Members 923 Officers of Central Commission and other staff 924 Proceedings of Central Commission 924 Vacancies, etc., not to invalidate proceedings of Central Commission 925 Expenses of Central Commission to be charged upon Consolidated Fund of India 925 Powers of Central Commission 925
Functions of Central Commission 925 Central Advisory Committee 926 Objects of Central Advisory Committee 926 Appeal to High Court in certain cases 926
Establishment and incorporation of State Commission 927 Constitution of Selection Committee by State Government 927 Term of office, salary and allowances and other conditions of service of Chairperson and Members 928 Removal of Members 929 Officers of State Commission and other staff 930
Functions of State Commission 930 Application of certain provisions relating to Central Commission to State Commissions 931 State Advisory Committee 932 Objects of State Advisory Committee 932 Representation before State Commission 932 Appeal to High Court in certain cases 932
Determination of tariff by Central Commission 932 Determination of tariff by State Commission 933 Reasons for deviation by Commissions 934
Budget of Central Commission 934 Accounts and audit of Central Commission 934 Budget of State Commission 935 Accounts and audit of State Commission 935 Annual Report of Central Commission 935 Annual Report of State Commission 935
Transparency in Commissions 936 Directions by Central Government 936 Directions by State Government 936 Members, officers and employees of Central Commission to be public servants 936 Special provision relating to the Orissa Electricity Reform Act, 1995 or Haryana State Electricity Reform Act, 1997 936 Proceedings before Commission 936 Protection of action taken in good faith 936 Punishment for non-compliance with orders or directions under the Act 936 Punishment for non-compliance with directions given by a Commission 937 Power of seizure 937 Offences by companies 937 Cognizance of offences 938 Inconsistency in laws 938 Delegation 938 Amendment of Act 54 of 1948 938 Overriding effect 939 Power to give directions 939 Power of Central Government to makes rules 939 Power of Central Commission to make regulations 939 Rules and regulations to be laid before Parliament 940 Power of State Government to make rules 940 Power of State Commission to make regulations 940 Rules and regulations to be laid before State Legislature 941 Power to remove difficulties 941 Repeal and saving 941 NOTIFICATIONS 941
Short title and commencement 943 Definitions 943 Preparation of Annual Report 943 Submission of Annual Report 943 SCHEDULE 943
Short title, commencement and interpretation 944 Definitions 944
Commission to have seal of its own 945 Officers of the Commission 945
Proceedings, etc. before the Commission 947 Quorum and sitting in Benches 947 Attendance by members and voting 947 Authority to represent 947
Petitions and pleadings before the Commission 948 General headings 948
Interim orders 954
Time-limit for disposal of petitions 959 Advisory Committee 959 Review of the decisions, directions, and orders 959 Continuance of Proceeding after death, etc. 959
Publication of petition 960 Inspection of Commission's records and confidentiality 961 Issue of orders and directions on procedures 961
General power to amend 961 Power to remove difficulties 962 Extension or abridgment of time prescribed 962 Effect of non-compliance 962 Costs 962 Enforcement of orders passed by the Commission 962 FORMS 962
Short title and commencement 964 Place of Office and working hours of the Commission 964 Authentication of orders 964 Seal of the Commission 964 Presentation of petitions, applications, replies etc. 965 Authority to represent before the Commission 965 Seal of the Commission with receipt stamp 965 Communication of defects 965 Grant of certified copies 966 Inspection of Records 967 Fee on petitions, applications, etc. 967 SCHEDULE 968 ANNEXURES 968
SUBJECT INDEX 999
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