Grant of licence

(1) The Commission may, on an application made to it in such form and on payment of such fee as may be specified by regulations, grant a licence to any person- (a) to transmit electricity in a specified area of transmission; or

(b) to distribute electricity in a specified area of distribution; or

(c) to supply electricity in a specified area of supply; or

(d) to supply electricity in bulk to any other licensee; or

(e) to engage in one or more of the activities mentioned in clauses (a) to (d):

Provided that no application for a licence to transmit electricity shall be entertained unless the applicant has obtained the approval of the State Transmission Utility in such manner as may be specified by regulations.

Explanation.- For the purpose of this Chapter and Chapter VI, the expression `specified area’ means the area specified in the licence.

(2) (a) (i) A person who applies for a licence under sub-section (1) shall publish a notice of his application for the information of the public specifying therein that if there is any objection to the application, the same may be sent to the Commission for its consideration;

(ii) the notice of his application shall be published within such time, in such manner and containing such particulars as the Commission may specify by regulations. (b) The Commission shall not grant a licence until,- (i) all objections and suggestions received by the Commission with reference to the application have been considered by the Commission:

Provided that no objection or suggestion shall be considered unless it is received before the expiration of such period not being less than a month from the date of the first publication of the notice under clause (a), as the Commission may by regulations specify; and

(ii) in the case of an application for a licence for an area including the whole or any part of any cantonment, aerodrome, fortress, arsenal, dockyard or camp or of any building or place in the occupation of the Central Government for defence purposes, the Commission has ascertained that there is no objection from the Central Government to the grant of the licence.

(c) Where an objection is received from any local authority concerned, the Commission shall, if in its opinion, the objection is untenable, record the opinion in writing and communicate it to such local authority alongwith reasons therefore.

(3) (a) There shall be specified in a licence -

(i) the specified area of transmission, or

(ii) the specified area of distribution, or

(iii) the specified area of supply, or

(iv) other licensee or person to whom electricity may be supplied in bulk, and

(v) such terms and conditions including those relating to transmission or distribution or supply as may be specified by regulations.

(b) The Commission may specify by regulations the conditions to be included in a licence requiring a licensee to-

(i) enter into an agreement with another person permitting such person to use electric lines, electrical plant and associated equipment operated by the licensee;

(ii) furnish information and documents which the Commission may require for its purpose;

(iii) inform the Commission of any scheme permitted by the licence which the licensee proposes to undertake;

(iv) undertake such functions and obligations of the Board under the Indian Electricity Act, 1910 and the Electricity (Supply) Act, 1948 as the Commission may specify by regulations;

(v) refer a disupte arising under the licence for determination by the Commission or by an arbitrator appointed by the Commission;

(vi) supply electricity in bulk to other licensees or exemption holder or sanction holder in the State or to any person outside the State;

(vii) comply with any direction given by the Commission; and (viii) act in accordance with the terms and conditions of the licence.

(4) A licence granted for transmission of electricity may authorise the licensee to construct, maintain or operate any intra-State transmission system under the direction, control and supervision of the State Transmission Utility.

(5) The provisions contained in the Schedule to the Indian Electricity Act, 1910 shall be deemed to be incorporated with, and to form part of, every licence granted under this Chapter save in so far as they are expressly added to, varied or excluded by the licence and shall, subject to any such additions, variations or exceptions which the Commission may make, apply to the undertaking authorised by the licence in relation to its activities in the State: Provided that where a licence is granted by the Commission for the bulk supply of electricity to other licensees for distribution or supply by them, then in so far as such licence relates to such bulk supply, the provisions of clauses IV, V, VI, VII, VIII and XII of the said Schedule shall not be deemed to be incorporated in the licence.

(6) The grant of a licence to a person shall not in any way hinder or restrict the power of the Commission to grant a licence to another person within the same specified area for a like purpose.