Section 14 in The Jammu and Kashmir Electricity Act, 2010
14. Grant of licence.
- The Commission may, on an application made to it under section 15, grant a licence to any person to -(a)transmit electricity as a transmission licensee; or(b)distribute electricity as a distribution licensee; or(c)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that any person engaged in the business of transmission or supply of electricity under the provisions of the repealed laws shall on the commencement of the Act be deemed to be a licensee under the Act for such period as may be stipulated in the licence, clearance or approval granted to him under the repealed laws and the provisions of the repealed laws shall apply for a period of one year from the date of commencement of the Act or such earlier period as may be specified, at the request of the licensee, by the Commission and thereafter the provisions of this Act shall apply to such business :Provided further that the Central Transmission Utility and State Transmission Utility shall be deemed to be a transmission licensee under the Act :Provided also that in case the Government transmits electricity or distributes electricity or undertakes trading in electricity, whether before or after the commencement of the Act, the Government shall be deemed to be a licensee under the Act, and shall not be required to obtain a licence under the Act :[Provided also that the Government Companies namely ; Jammu and Kashmir State Power Transmission Company Limited (Transco), Jammu and Kashmir State Power Trading Company Limited (Tradeco), Jammu Power Distribution Company Limited (Jammu Discom) and Kashmir Power Distribution Company Limited (Kashmir Discom) or the Company referred to in sub-section (2) of section 91 of the Act, shall be deemed to be licensee under this Act.] [Inserted by Act No. 11 of 2018, dated 13.3.2018.]Provided also that the 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 the Act, comply with the additional requirements (relating to the capital adequacy, creditworthiness, or Code of Conduct) as may be prescribed, 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 shell not be required to obtain any separate licence from the 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 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 47:Provided also that a distribution licensee shall not require a licence to undertake trading in electricity.
