"The surplus power from the states can be transferred to power deficit states through the Inter-State Transmission System (ISTS) from the source of supply between the point of supply and point of drawl," an official statement said.
"Central Government through Electricity Act (2003), trading mechanism and Power Exchange in accordance with the relevant regulations notified by CERC facilitate this process," the statement said.
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National Grid, for evacuation of power from generating sources located in different regions in the country and facilitating transfer of power from surplus to deficit regions, is in place, it said.
In addition, licences have been granted for trading of power. Power exchanges have also been set up for facilitating transfer of power from surplus to deficit States. Power can also be supplied under bilateral arrangements.
Power System Development Fund (PSDF) has been constituted vide Central Electricity Regulatory Commission (Power System Development Fund) Regulations, 2010, which inter-alia may also be utilised for establishment of interstate transmission network, it further added.