Grant of licences by the Commission.

(1) The Commission may on an application made in such form and on payment of such fee, as may be prescribed, grant a licence authorising any person to,- (a) transmit electricity in a specified area of transmission; or (b) supply electricity in a specified area of supply including bulk supply to licensees or any person. (2) In respect of the grant of any such licence the following procedure shall be followed namely:- (a) any person applying for a licence shall publish a notice of his application in such manner, and with such particulars as may be prescribed by the Commission within 14 days after making the application; (b) the Commission, shall not grant a licence until,- (i) all objections received relating to the application for the licence have been considered by the Commission; provided that no objection shall be considered by the Commission unless it is received within three months of the date of the first publication of the notice under clause (a) above; and (ii) in the case of an application for a licence to supply or transmit in an area which includes the whole or 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 shall ascertain whether there is any objection to the grant of the licence on the part of the Central Government; (c) where an objection is received from any local authority concerned, the Commission shall, if in its opinion the objection is insufficient, record in writing and communicate to such local authority its reasons for such opinion; and (d) no application for a licence shall be made by any local authority except pursuant to a resolution passed at a meeting of such authority held after one month’s previous notice of the same specifying the purpose thereof has been given in the manner in which notices of meetings of such local authority are usually given. (3) A licence shall prescribe the duration, extent to which and the terms and conditions under which the transmission or supply of energy is to be made and contain such other conditions as the Commission may consider appropriate for achieving the purposes of the Act. (4) Without prejudice to the generality of sub-section (3), the conditions included in a licence by virtue of that sub-section may require the licensee to,- (a) enter into agreements on specified terms with other persons for the use of any electric lines, electrical plant or plants and associated equipment operated by the licensee; (b) comply with any direction given by the Commission; (c) act in accordance with the terms of the licence; (d) refer all disputes arising under the licence for determination by the Commission; (e) furnish information, documents and details which the Commission may require for its own purpose or for the purposes of the Central or State Government or Central Electricity Authority; (f) comply with the requirements of the India Electricity Act, 1910 and the Electricity (Supply) Act, 1948 or rules framed thereunder in so far as they are applicable; (g) undertake such functions and obligations of the Telangana State Electricity Board under the provisions of the Indian Electricity Act, 1910 and the Electricity (Supply) Act, 1948 as the Commission may prescribe; (h) obtain the approval of the Commission of such things that are required under the licence conditions or for deviation from the same; (i) notify the Commission of any scheme that he is proposing to undertake including the schemes in terms of the provisions of the Electricity (Supply) Act, 1948; (j) purchase power in an economical manner and under a transparent power purchase process; and (k) supply in bulk to other licensees or to customers. (5) Without prejudice to the generality of sub-section (3), the conditions included in a licence granted by the Commission may require the holder of such a licence to establish a tariff or to calculate its charges from time to time in accordance with the requirements prescribed by the Commission. (6) 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 supply licence granted under this Part save in so far as they are expressly varied or excepted by the supply licence and shall, subject to any such additions, variations or exceptions which the Commission is empowered to make having regard to the purposes of the Act, apply to the undertaking authorised by the licence in relation to its activities in the State: Provided that where a supply licence is granted by the Commission for the supply of energy to other licensees for distribution by them, then in so far as such licence relates to such supply, the provisions of clauses IV, V, VI, VII, VIII and XII of the said Schedule shall not be deemed to be incorporated within the supply licence. (7) The conditions included in a licence may contain provision for the conditions to cease to have effect or be modified at such times, in such manner and in such circumstances as may be specified in or determined by or under the conditions. (8) Any provisions included by virtue of sub-section (7) above in a licence shall have effect in addition to the provision made by sub-section (5) of section 18 and section 19 with respect to the amendment of the conditions of a licence. (9) Unless indicated in the terms of a licence, the grant of a licence under this section to a person shall not in any way hinder or restrict the grant of a licence to another person within the same area of supply for a like purpose and accordingly the licensee shall not claim any exclusivity. (10) The licence granted by the Commission in term of this Act may provide that the licensee shall have the powers and authority to take appropriate actions for revenue realisation, prosecution for theft, meter tampering, diversion of electricity, and all such and similar matters affecting the distribution and supply of electricity to the consumer. (11) The Commission shall be entitled to authorise the licensees and persons to exercise such power and authority as the licensees and persons could be given under the provisions of the Indian Electricity Act, 1910 and the Electricity (Supply) Act, 1948.