Exemption from the requirement to have a license

(1) Notwithstanding anything contained in this Act, the Commission may by a general or special order grant exemption to any person from the requirement to have a licence to engage in transmission, distribution or supply of electricity including bulk supply subject to compliance with such conditions as may be specified by the regulations.

(2) The Commission shall not grant any exemption under sub-section (1):

(a) except with the consent of the Central Government, in any case where electricity is to be transmitted, distributed or supplied in any area forming part of any cantonment, aerodrome, fortress, arsenal, or camp or any building or place in the occupation of the Central Government for defence purposes;

(b) in any area falling within the area of transmission, distribution or supply, without giving an opportunity of hearing to the licensee of such area.

(3) An exemption under sub-section (1) may be granted having regard to such guidelines as may be specified in the regulations --

(a) to persons of a particular category; or

(b) to a particular person; or

(c) for a particular period.

(4) An exemption granted under sub-section (1) shall be published in such manner as the Commission considers appropriate.

(5) The exemption granted under sub-section (1) may be revoked by the Commission at any time for reasons to be recorded in writing.

(6) An exemption granted under sub-section (1), unless previously revoked, shall continue in force for such period as may be specified in or determined by or under the order granting the exemption.