The Appropriate Commission may, on application made to it under

section 15, grant any person licence to any person -

1. (a) to transmit electricity as a transmission licensee; or
2. (b) to distribute electricity as a distribution licensee; or
3. (c) to undertake trading in electricity as an electricity trader,

in any area which may be specified in the licence:

Provided that any person engaged in the business of transmission or

under this Act for such period as may be stipulated in the licence, clearance or approval granted to him under the repealed laws or such Act specified in the Schedule, and the provisions of the repealed laws or such Act specified in the

the request of the licensee, by the Appropriate Commission and thereafter the

provisions of this Act shall apply to such business:

Provided further that the Central Transmission Utility or the State

Transmission Utility shall be deemed to be a transmission licensee under this Act:

Provided also that in case an Appropriate Government transmits electricity or distributes electricity or undertakes trading in electricity, whether before or after the commencement of this Act, such Government shall be deemed to be a licensee under this Act, but shall not be required to obtain a licence under this Act:

Provided also that the Damodar Valley Corporation, established under sub-section (1) of section 3 of the Damodar Valley Corporation Act, 1948, shall be deemed to be a licensee under this Act but shall not be required to obtain a licence under this Act and the provisions of the Damodar Valley Corporation Act, 1948, in so far as they are not inconsistent with the provisions of this Act, shall continue to apply to that Corporation:

Provided also that the Government company or the company referred to

in sub-section (2) of section 131 of this Act and the company or companies

created in pursuance of the Acts specified in the Schedule, shall be deemed to be a

licensee under this Act:

Provided also that the Appropriate Commission may grant a licence to two or more persons for distribution of electricity through their own distribution system within the same area, subject to the conditions that the applicant for grant of licence

Procedure for Grant of Licence

within the same area, subject to the conditions that the applicant for grant of licence within the same area shall, without prejudice to the other conditions or requirements under this Act, comply with the additional requirements (including the capital adequacy, credit-worthiness, or code of conduct) as may be prescribed by the Central Government, and no such applicant who complies with all the

Provided also that in a case where a distribution licensee proposes to

Provided also that where a person intends to generate and distribute

electricity in a rural area to be notified by the State Government, such person shall

not require any licence for such generation and distribution of electricity, but he shall comply with the measures which may be specified by the Authority under section 53: