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From electricity point of view, India is demarcated into five regions viz. Northern Region, Western Region, Southern Region, Eastern Region and North-Eastern Region. Eastern Region comprising of states of Bihar, Jharkhand, Orissa, West Bengal, Sikkim has an area of 4,25,432 sq. km, which is about 13% of the total area of the country. In pursuance of sub-section 55 (2) of Section 2 of the ELECTRICITY ACT 2003, Govt. of India vide its resolution F. No. 23/1/2004-R&R dated 25th May 2005 and subsequent resolution F. No. 23/1/2004-R&R dated 29th November 05 had established Eastern Regional Power Committee (ERPC) for facilitating the integrated operation of the power system in the region. Section 29 (4) of the Act also mandates that ERPC may, from time to, agree on matters concerning the stability and smooth operation of the integrated grid and economy and efficiency in the operation of the power system in that region.