The Act and its Twelfth Schedule address post-bifurcation issues in coal, oil, natural gas and electricity generation, transmission and distribution. Energy systems cross borders: a plant may sit in one state, a transmission line serve both, and fuel supply be controlled through national arrangements. Section 92 directs implementation of the Union's principles, guidelines, directions and orders on these matters. This is separate from Section 94's fiscal incentives or Section 90's Polavaram project status.

An exam answer should identify whether the question asks allocation of existing power, a new project proposal, a regulatory instruction or a fuel supply. “Power deficit” is a dated balance of supply and demand, not an unchanging geographic trait. The original Twelfth Schedule contains temporary arrangements, including a first right of refusal for surplus power during a defined period. Do not report such a 2014 transition rule as permanently operative without checking later law and orders.

Worked example: A power station serves both successor States after the split. Ownership, generation allocation, fuel supply and actual electricity drawn are separate matters. Read the Act's electricity and fuel arrangements together with later regulator and dispatch records. A plant physically in one State does not mean all generated power belongs to that State; conversely an allocated share does not prove it was delivered every hour.

Active recall: What does Section 92 concern? Why must a time-limited power rule carry its date?