Section 16(1) in The U.P. Electricity Reforms Act, 1999
(1)The Commission may grant exemption from the requirement of a licence on such terms and conditions as may be specified in the regulations :Provided that the Commission shall not grant any exemption under this subsection except with the consent :-(i)in case where electricity is to be supplied in an area forming part of any cantonment, aerodrome, fortress, arsenal, or camp or any building or place in the occupation of the Central Government for defence purposes, of the Central Government;(ii)in case where electricity is to be supplied in an area falling within the area of supply of a licensee, of that licensee :Provided further that, except in a case, under clause (i) of the first proviso, no such consent shall be necessary' if the Commission is satisfied that such consent has been unreasonably withheld.
