Legal Document View

Unlock Advanced Research with PRISMAI

Integrated with over 4 crore judgments and laws — designed for legal practitioners, researchers, students and institutions

- Know your Kanoon - Doc Gen Hub - Counter Argument - Case Predict AI - Talk with IK Doc - ...
Upgrade to Premium
[Cites 0, Cited by 0] [Entire Act]

State of Tamilnadu - Section

Section 7 in Tamil Nadu Electricity Regulatory Commission (Licensing) Regulations, 2005

7. Application for grant of licence.

(1)The application for grant of licence under section 14 of the Act, to transmit electricity or distribute electricity or to undertake trading in electricity shall respectively be in Form No.l, Form No.2 and Form No.3 specified as Annexures 2, 3 and 4 of these regulations and shall be accompanied by the proof of payment of such fees as prescribed by the State Government.
(2)Every application for a licence snail be signed by the applicant or his authorised representative and shall be addressed to the Designated Officer of the Commission. The application shall be filed in five sets or such number of copies as the Commission may direct, and each set shall be accompanied by;
(a)three sets of maps of the proposed area of transmission or distribution. Such maps shall be on a scale of
(i)not less than 10 cm to a km or
(ii)such other scale as may be approved by the Commission in the circumstances of the case.
(b)a list of all local authorities vested with the administration of any or all the portion of the area of transmission or distribution or trading;
(c)an approximate statement describing any lands which the applicant proposes to acquire for the purpose of the licence, under the provisions of the Land Acquisition Act, 1894 (Act 1 of 1894) and the proposed means of such acquisition;
(d)a detailed description of the existing assets if any, in the applicant's proposed area of activity, including the single line ' diagram of the network as well as an executive summary of the existing facilities, details of other equipments/apparatus in his area including number and details of sub-stations, details of transformers, a description of the metering systems and other relevant details of the system.
(e)an approximate statement of the capital proposed to be expended in the proposed area of activity of the licence and such other particulars as the Commission may require;
(f)a copy of the Memorandum of Association (MoA) and Articles of Association (AoA) of the company where the applicant is a body corporate, Certificate of Incorporation / Registration, Certificate of commencement of business, details of Income Tax registration or Tax Account Number and similar statutory documents in all cases;
(g)Audited annual accounts for previous five years in case the applicant was in the same business or the project report certified by the chartered accountant;
(h)proof for having paid the application fee;
(i)details and background of the applicant;
(j)such other documents/information as the Commission may, in this regard, require by order.
(k)in case of an applicant seeking a trading licence, volume of power intended to be traded during the first year after grant of licence and the future plans for trading during the next five years.
(3)The application for licence shall be supported by an affidavit in form No. 4 in the Annexure 5 with these Regulations sworn before Advocate/Notary Public/Magistrate/Gazetted officer.
(4)[ A person applying for grant of a licence, for distribution of electricity through his own distribution system within the same area of supply of an existing distribution licensee shall, comply with such additional requirements including capital adequacy, credit worthiness or code of conduct as prescribed by the Central Government in Distribution of Electricity Licence (additional requirement of Capital Adequacy, Creditworthiness and Code of Conduct) Rules, 2005 and as amended from time to time.] [Inserted by Commission's Notification No.TNERC/LR/12/2,dated 4.7.2007 (w.e.f. 25.7.2007).]
(5)Any Person applying for licence to undertake trading in electricity in the State of Tamil Nadu shall duly fulfil the conditions of capital adequacy requirement and creditworthiness as specified under sub-regulation (6) and technical requirement, as stipulated under sub-regulation (7).
(6)Capital adequacy requirement, and creditworthiness of electricity trader:
(a)Having regard to the volume of trading proposed to be undertaken, the networth of an electricity trader at the time of his application shall be as set out in the Table 1 hereunder:-
Table 1 - Net Worth
S. No. Category Volume of electricity proposed to be traded(in K Wh) per annum Minimum Networth (in Rs.Crores)
1. A Less than 50 MU 1
2. B Greater than 50 MU and equal up to 100 2
3. C Greater than 100 MU and equal up to 200 MU 4
4. D Greater than 200 MU and equal up to 300 MU 6
5. E Greater than 300 MU and equal up to 400 MU 8
6. F Greater than 400 MU and equal up to 500 MU 10
7. G Greater than 500 MU Trade volume (in kWh) x Rs 0.2.
(b)An applicant applying for a trading licence, and if the applicant is a company, the promoters of the company, and if the applicant is a partnership firm, the partners of the firm, shall at no time have been classified as "wilful defaulter" by the Reserve Bank of India or other relevant authority.
(c)If the applicant is a company, which has been rated by a credit rating agency within a period of eighteen (18) months prior to the date of the application for grant of trading licence, it shall have a rating above 'B'.
(d)Where an applicant has one or more borrowal accounts with a bank(s), all such accounts should be classified as 'Standard' by each of its bankers.
(7)Technical requirements of the applicant applying for a licence: The applicant for a licence shall have:
(a)at least one full-time professional in the relevant discipline with a minimum of twenty years experience to lead the organisation along with sufficient engineering personnel commensurate with the quantum and nature of works involved in the licensed business.
(b)at least one full-time finance/accounts professional with a minimum of twenty years experience to lead the finance arid accounting wing, along with sufficient finance and accounting personnel commensurate with the quantum and nature of works involved in the licensed business
(c)sufficient skilled staff, including those at the lower levels with adequate qualifications and experience and basic computer awareness, in order to discharge technical / commercial transactions smoothly.
(d)adequate office area with appropriate communication facilities to the satisfaction of the Commission to effectively communicate with the different business associates and regulatory bodies.
(e)to show justification to the satisfaction of the Commission that the technical capability and resources exhibited by the applicant are adequate to manage the licensed business.