Section - 14. Grant of licence

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The Appropriate Commission may, on an application made to it under section 15, grant a licence to any person
(a) to transmit electricity as a transmission licensee; or
(b) to distribute electricity as a distribution licensee; or
(c) to undertake trading in electricity as an electricity trader,
in any area as may be specified in the licence:

Provided that any person engaged in the business of transmission or supply of electricity under the provisions of the repealed laws or any Act specified in the Schedule on or before the appointed date shall
be deemed to be a licensee 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approval granted to him under the repealed laws or such Act specified in the Schedule, and the provisions
of the repealed laws or such Act specified in the Schedule in respect of such licence shall apply for a period of one year from the date of commencement of this Act or such earlier period as may be specified, at 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 (14 of 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, or 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 within the same area shall, without prejudice to the other
conditions or requirements under this Act, comply with the additional requirements 1
[relating to the capital adequacy, creditworthiness, or code of conduct] as may be prescribed by the Central Government, and no such applicant, who complies with all the requirements for grant of licence, shall be refused grant of licence on the ground that there already exists a licensee in the same area for the same purpose:

Provided also that in a case where a distribution licensee proposes to undertake distribution of
electricity for a specified area within his area of supply through another person, that person shall not be
required to obtain any separate licence from the concerned State Commission and such distribution
licensee shall be responsible for distribution of electricity in his area of supply:

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:
Provided also that a distribution licensee shall not require a licence to undertake trading in electricity.

 

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