NOTIFICATION

LICENSE

Application of license:

71. The Commission may on the application submitted by interested party for the great supply license/transmission license or if commission considers appropriate by advertising in new paper or otherwise notifying in such other manner as the Commission may decided, invite application for the grant of such license under the Act. Provided that the Commission shall consult Board/Utility before grant of supply license, whereas, for the transmission license the applicant shall obtain approval of the Board/Utility, since the application for the grant of transmission license is required to be considered only when the approval of the Board/Utility is obtained. The Board/Utility shall decide the matter for approval of such application within three months

72 (i) The Commission may from time to time issue standards forms of licenses in accordance with which applicants shall prepare draft licenses. These standard forms may be used for the purposes of these Regulations with such variations, as the circumstances of each case require. Draft licenses shall contain such particulars as may be specified by the Commission from time to time.

(ii) The draft license shall generally contain the following particulars:

(a) a short title descriptive of the proposed undertaking together with the address and description of the applicant, and if the applicant is a company , the names of all the directors of the company ;
(b) the type of license applied for;
(c) location of the proposed service area/segment;
(d) a description of the proposed area/segment; and
(e) Such other particulars as the Commission may specify.

73.Application for transmission license or supply license shall be made in accordance with the provision of the Indian Electricity Act, 1910, the Act and these Regulations. Every application for a license shall be signed by or on behalf of the applicant and addressed to the Secretary. Application shall be accompanied by the following signed documents:

(a) printed copies, six in number or as the Commission may direct, of the draft license with the name and addresses of the applicant and of his agent (if any) printed on the face of the draft;
(b) six copies of the scaled map, as provided in rule 11 of the Indian Electricity Rules, 1956 or as the Commission may direct, of the proposed area of transmission or supply and, in the case of supply, of the streets or roads to which the supply of energy is to be made, which shall be marked or colored as to define any portion of such area and streets or roads which shall be so marked or colored as to define any portion of such area and streets or roads which are under the administrative control of any local authority;
(c) a list of any local authorities vested with the administration of any portion of the area of supply;
(d) an approximate statement describing lands which the applicant proposes to acquire for the purpose of the license and the means of such acquisition;
(e) an approximate statement of the capital proposed to be expended in connection with the undertaking and such other particulars as the Commission may require;
(f) a copy each of the memorandum and articles of association, annual accounts for the last three years or other similar documents as may be required;
(g) a receipt for such processing fee, as the Commission may require; and
(h) where the application is supported with consent of the Board/Utility, the Commission may enquire into the facts and circumstances in which such consent was granted.

Copies of the maps and draft license for public inspection;

74.The applicant shall maintain at his own office and that of his agent (if any) and also at the office of every local authority vested with the administration of any portion of the proposed area of supply:

(a) copies of the maps referred to in sub-class (b) of Regulations 73 for public inspection, and
(b) sufficient number of copies of the draft license to be furnished to all persons applying for them at a price not exceeding normal photocopying charges per copy.

Acknowledgement of application:

75.On receipt of the application, the receiving officer shall note there on the date of its receipt and shall furnish to the applicant an acknowledgement in that regard stating the date of receipt.

Calling for additional information:

76. The Commission or the Secretary or any officer designated for the purpose may, upon scrutiny of the application, require the applicant to furnish within a specified period such additional information or particulars or documents as considered necessary for the purpose of dealing with the application.

Certification of the application:

77.If the Secretary or the officer designated by the Commission finds the application complete in all respects, he shall certify that the application is ready for being considered for grant of license in accordance with the procedure provided in the Act and Regulations.

Advertisement of application and filing objections for supply license:

78. (1) The application of a supply license shall, within fourteen days from the date of registration of the application publish notice of his application by public advertisement.

(2) The advertisement shall bear a short title corresponding to the draft license and shall give the addresses of the offices at which copies of draft license and maps required as per these Regulations may be inspected or obtained by any person and shall also state that every local authority, utility or person, desirous of making any representation/objection may do so by a letter addressed to the Secretary of the Commission within three months of the date of issue of the first advertisement, complying with the requirement of chapter-II of these Regulations.

79.The Commission may direct that notice of the application be also served on the Central Government, the State Government, the local authority or any other authority or person or body either by hand with receipt thereof or by registered post with acknowledgement due.

80 (i) The applicant shall also apply and before regular hearing of application, obtain the 'no-objection' required from the concerned local authority and also Central Government, wherever applicable, in terms of section 3 of the Indian Electricity Act, 1910 before the application is placed for hearing by the Commission for grant of the supply license.

(ii) The application for transmission license shall be accompanied by the approval of Board/State Transmission Utility containing norms and other terms and conditions for construction, maintenance and operation of the transmission system under the direction, control and supervision of the State Transmission Utility.

(iii) Application by the non-license for sanction to supply energy to the public shall also accompany the consent of Board/Utility, local authority, and Central Government (if applicable) and of the licensee (if the area falls within the area of supply of another licensee)

Local enquires and hearings:

81.If the applicant has duly published the notice of the application and if the time for filing of the objections is over and after the applicant has furnished to the Commission the 'no-objection', if any , required from the Central Government and/or other concerned agencies as applicable, the Commission may proceed for regular hearing.

82. The Commission shall give the notice of local inquiry or hearing to the applicant, the persons who had filed objections, the Central Government, the State Government and such other authority, person or body as the Commission considers appropriate. The objection, if considered trifling or vexatious in nature, shall not be entertained.

Approval of draft license and notification of the grant:

83. After enquiry, if any, and the hearing, the Commission may decide to grant or refuse the license. If it decides to grant the license it may do so by approving the draft license with such modifications, changes or additions and subject to such other terms and conditions as the Commission may direct.

84. When the Commission has approved a draft license, either in its original form or in a modified form, the Secretary shall inform the applicant to consent to such approval and of the form in which it is proposed to be granted and the conditions to be satisfied by the applicant including the fees to be paid for the grant of the license. The Commission may thereafter, direct the publication of the license or such part or gist thereof as the Commission considers appropriate.

Date of commencement of license:

85.The license shall commence from such date as the Commission may specify in the order granting the license.

Deposit of maps:

86.When a license has been granted, three sets of maps showing particulars specified in clause 74, shall be signed and dated by the Secretary corresponding with the date of the notification of the grant of the license. One set of such maps shall be retained by the Secretary and two sets given to the licensee.

Deposit of printed copies:

87. (1) Every person who is granted a license shall, within thirty days of the grant thereof:

(a) have adequate number of copies of the license printed;
(b) have adequate number of maps prepared showing the area of supply/transmission, specified in the license: and
(c) arrange to exhibit a copy of such license and maps for public inspection at all reasonable times at his head office, at the local offices (if any) and at the office of every local authority within the area of supply.

(2) Every such licensee shall, within the aforesaid period of thirty days, supply free of charge one copy of the license and the relevant maps to every local authority within the area of supply and shall also make necessary arrangements for the supply of printed copies of the license to all persons applying for the same at a price not exceeding normal photocopying charges.

Preparation and submission of accounts:

88. (1) Every licensee, unless expressly exempted, shall cause the accounts of his undertaking be prepared up to the thirty-first day of March each year.

(2) Such licensee shall prepare and render an annual statement of his duly audited account within a period of six months from the aforesaid date, or such extended period as the Commission may authorise, after it is satisfied that the time allowed is insufficient owing to any cause beyond the control of the licensee and the statement shall be rendered in such number of copies and in such forms duly signed, as the Commission may direct.

(3)The Commission may be a special or general order direct that, in addition to the submission of the annual statement of accounts in the forms provided for in the above sub-clause, the licensee shall submit to the Secretary, such additional information as may be required.

Model conditions of supply:

89. (1) The licensee shall furnish to the Commission the condition of supply. The Commission may direct, from time to time, the model conditions of supply to be adopted by the licensee, with such variations as the Commission may permit.

(2) The licensee shall always keep in his office the adequate number of printed copies of such conditions of supply and shall, on demand, supply such copies to any applicant at a price not exceeding normal photocopying charges.

Contravention of license:

90. The Commission may pass such orders as it thinks fit in accordance with the provisions given below for the contravention or the likely contravention of the terms and conditions of the license by licensee.

(1) Interim order:- (i) Where the Commission is satisfied that a licensee is contravening or is likely to contravene any of the relevant conditions or requirements of its license, it shall by final order under sub-clause (2)and, if it thinks appropriate in accordance with sub-clause (1) (ii), by interim order under this clause, issue such directions as it deems proper for securing compliance.

(ii) In determining whether it is appropriate that an interim order be made, the Commission shall have regard in particular to:

(a) the extent to which the contravention or likely contravention by the licensee will affect the achievement of the objects and purposes of this Act;
(b) the extent to which any person is likely to sustain loss or damage in consequence of anything which is likely to be done or omitted to be done in contravention of the relevant condition or requirement, before a final order can be made, and
(c) the extent to which there is any other available remedy in respect of the alleged contravention of a relevant condition or requirement.

(iii) If the Commission proposes to make an interim order, it shall give notice to the license:

(a) stating that it proposes to make the order;
(b) setting out: (j) the relevant conditions or requirements with which the proposed order is intended to secure compliance;

(ii) the acts or omissions which, in its opinion, constitute contravention of that condition or requirement;

(iii)the order facts which in its opinion, justify the making of the proposed order; and

(iv) the effects of the proposed order.

(c) specify the period not being less than five days from the date of notice within which the licensee may make representations or objections to the proposed order.

(iv)Subject to sub-class (1) (v), having considered any of the representations or objections from the licensee pursuant to sub-class (1) (iii) (c) , the Commission may make an interim order at any time after expiry of the period referred to above, if

(a) The Commission has reason to believe that the licensee to whom the order relates has contravened or is contravening or is likely to contravene any relevant condition or requirement; and
(b) the provisions made by the order are requisite for the purpose of securing compliance with that condition or requirement.

(v) The Commission may not make an interim order if it is satisfied that the licensee has agreed to take and is taking all such steps as the Commission considers necessary to secure compliance with the condition or requirement in question.

(vi) The order---

(a) shall require the licensee to whom it relates, to do or to abstain from doing such things as are specified in the order;
(b) shall take effect from such time as is specified in the order; and
(c) may be revoked, modified or rescinded at any time by the Commission, but in any event shall cease to have effect at the end of such period as is stated in the order, unless the Commission is at that time following the procedure set out in sub-clause (2) to declare the interim order to be a final order.

(vii) As soon as practicable, after making an interim order, the Commission shall-

(a) serve a copy of the order on the licensee to whom the order relates;
(b) publish the order in such manner as it considers appropriate for the purpose of bringing it to the attention of the persons likely to be affected by it; and
(c) Commence proceedings to declare the interim order to be final order in accordance with sub-clause (2)

(2) Final order:

(i) If the Commission proposes to make the final order or to declare an interim order to be the final order, the Commission shall give notice to the licensee :

(a) stating that it proposes to make the final order or to declare the interim order to be final order;
(b) setting out the information referred to in sub-clause (1) (iii) (b) of clause 90 in respect of the proposed final order; and
(c) specifying the period, not being less than sixty days from the date of publication of the notice, within which representations or objections to the proposed order may be made.

(ii) The Commission shall consider the representations or objections that are duly made and not withdrawn by the licensee and shall publish details of such representations or objections specifying a period, not being less than thirty days from the date of publication of the notice within which further representations or objections may be made.

(iii) A notice under sub-clause (2) (i) shall be given by serving a copy of notice and a copy of the proposed final order on the licensee to whom the order relates, and a notice under sub-clause (2) (ii) by publishing it in such manner as the Commission considers appropriate for the purpose of bringing the matters to which the notice relates, to the attention of person likely to be affected.

(iv) The Commission shall not modify the proposed final order as a result of representations or objections received following publication of the notice referred to in sub-clause (2) (ii) except-

(a) after considering the representations or objections; and
(b) with the consent to the modification of the licensee to whom the proposed final order relates:

Grant of exemption from transmission license:

91.An application under section 27-D(5) of the Indian Electricity Act, 1910 for exemption from obtaining the transmission license shall be made in the form prescribed for the purpose by the Commission, and the application shall contain such particulars and shall be accompanied by such documents as the Commission may direct. The application shall be supported by affidavit as provided in chapter II of the Regulations.

92. Unless otherwise specified in writing by the Commission, each application for exemption shall be accompanied by a receipt of processing fee as the Commission may prescribe.

93. Unless otherwise specified in writing by the Commission, the procedure for grant of license, in so far it can applied, shall be followed while dealing with an application for exemption from a transmission license.

Revocation of the license:

94. The Commission may, under the powers vested by section 9(e) of the Act and under section 4 of the Indian Electricity Act, 1910, may initiate proceedings for revocation of license, suo motu or on receiving any complaint or information from any person, consumer or utility or any reference made to the Commission by the State Government or Central Electricity Authority.

95. The Commission may give notice of the proceedings for the revocation of license to the licensee and to such other persons authority or body as it may consider necessary.

96. Having regard to the provisions of the clause 90 of these Regulations and procedure prescribed therein, the inquiry by the Commission on the revocation of license, in so far as it is applicable, shall be in the same manner as provided in Chapter II of these Regulation. The licensee shall be given not less than one month notice in writing to show cause against the proposed revocation, stating the ground on which it is proposed to revoke the license.

97. If the Commission decides to revoke the license, it shall issue the notice of revocation specifying the effective date from which revocation shall take effect and containing such order terms and conditions as the Commission may decide.

98. The Commission may, instead of revoking the license, pass any other order imposing further terms and conditions, which the licensee shall be required to abide thereafter.

Amendment of licenses :

99. Application by the licensee of otherwise for alterations or amendments in the terms and conditions of the license granted, under section 9(e) of the Act and section 4-A of the Indian Electricity Act,1910, shall made in such form as may be prescribed by the Commission. The application shall be supported by affidavit as provided in chapter II of the Regulations.

100. Unless otherwise specified in writing by the Commission, each application for amendment or alteration in the license shall be accompanied by a receipt of such fee as the Commission may prescribe.

101. Unless otherwise specified in writing by the Commission, the procedure prescribed in these Regulations for grant of license, in so far applicable, shall also be followed while dealing with an application for amendment or alteration of these license.