Section 19 in Karnataka Electricity Reform Act, 1999
19. Grant of licenses by the Commission.
(1)The Commission may on an application made in such form and on payment of such fee as may be specified by regulations, grant a license authorising any person to,-(a)transmit electricity in a specified area of transmission; and/or(b)supply electricity in a specified area of supply or supply in bulk to the licensees or any person.(2)In respect of the grant of any such license, the following provisions shall apply:-(a)Any person applying for a license shall publish a notice of his application in such manner and with such particulars as may be specified by regulations within fourteen days after making the application;(b)The Commission shall not grant a license until,-(i)all objections received relating to the application for the license have been considered by the Commission, provided that no objection shall be considered by the Commission unless it is received within such time from the date of the first publication of the notice under clause (a), above as may be specified by regulations, which shall not be less than forty-five days; and(ii)in the case of an application for a license to supply or transmit in an area which includes the whole or any part of any cantonment, aerodrome, fortress, arsenal, dockyard or camp or of any building or place in the occupation of the Central Government for defence purposes, the Commission has ascertained that there is no objection to the grant of the license on the part of the Central Government; [and] [Inserted by Act 26 of 2001 w.e.f 10.11.2001.](iii)[ the KPTC is consulted in the matter.] [Inserted by Act 26 of 2001 w.e.f 10.11.2001.](c)Where an objection is received from any local authority concerned, the Commission shall, if in its opinion the objection is insufficient, record in writing and communicate to such local authority its reasons for such opinion; and(d)No application for a license shall be made by any local authority except pursuant to a resolution passed at a meeting of such authority held after one month's previous notice of the same specifying the purpose thereof has been given in the manner in which notices of meetings of such local authority are usually given.(3)There shall be specified in the license the duration, extent to which and the terms and conditions under which the transmission or supply of energy is to be made and it shall also contain such other conditions as the Commission may consider appropriate for achieving the purposes of the Act.(4)Without prejudice to the generality of sub-section (3), the conditions included in a license by virtue of that sub-section may require the licensee to,-(a)enter into agreements on specified terms with other persons for the use of any electric lines, electrical plant and associated equipment operated by the licensee;(b)comply with any direction given by the Commission;(c)act in accordance with the terms of the license;(d)refer all disputes arising under the license for determination by the Commission;(e)furnish information, documents and details which the Commission may require for its own purpose or for the purposes of the Central or State Government or Central Electricity Authority or Central Electricity Regulatory Commission;(f)comply with the requirements of the Indian Electricity Act, 1910 and the Electricity (Supply) Act, 1948 or rules framed thereunder in so far they are applicable;(g)undertake such functions and obligations of the Board under the Indian Electricity Act, 1910 and Electricity (Supply) Act, 1948 as the Commission may specify by regulation;(h)obtain the approval of the Commission of such things that are required under the license conditions or for deviation from the same;(i)notify the Commission of any scheme that he is proposing to undertake including the schemes in terms of the provisions of the Electricity (Supply) Act, 1948;(j)purchase power in an economical manner and under a transparent power purchase procurement process;Explanation. - The contracts concluded by the State Government or the Board with generating companies and transmission companies prior to the date of commencement of the Act shall stand assigned to the KPTC in terms of section 14 and the KPTC may continue the purchase or transmission of power under such contracts for effecting bulk sales, distribution and supply to other licensees;(k)the purchase of power from the KPTC to the extent necessary to enable the KPTC to perform its obligations under the contracts concluded by the State Government or the Board referred to in clause (j);(l)supply of electricity in bulk to other licensees or to customers.(5)Without prejudice to the generality of sub-section (3), conditions included in a license granted by the Commission may require the holder of such a license to establish a tariff or to calculate its charges from time to time in accordance with the requirements specified by regulations by the Commission.(6)The provisions contained in the Schedule to the Indian Electricity Act, 1910 shall be deemed to be incorporated with and form part of, every supply license granted under this Part save in so far as they are expressly varied or excepted by the supply license and shall, subject to any such additions, variations or exceptions which the Commission is empowered to make having regard to the purposes of the Act , apply to the undertaking authorised by the license in relation to its activities in the State:Provided that where a supply license is granted by the Commission for the supply of energy to other licensees for distribution by them, then in so far as such license relates to such supply, the provisions of clauses IV, V, VI, VII, VIII and XII of the said Schedule shall not be deemed to be incorporated within the supply license.(7)The conditions included in a license may contain provision for the conditions to cease to have effect or be modified at such times, in such manner and in such circumstances as may be specified in, or determined by or under, the conditions.(8)Any provisions included by virtue of sub-section (7) in a license shall have effect in addition to the provisions made under sections 22(5) and 23 with respect to the amendment of the conditions of a license.(9)Unless if so indicated in the terms of a license, the grant of a license under this section to a person shall not in any way hinder or restrict the grant of a license to another person within the same area of supply for a like purpose and the licensee shall not claim any exclusivity.(10)The license granted by the Commission in terms of this Act may provide that the licensee shall have the powers and authority to take appropriate actions for revenue realisation, prosecution for theft, meter tampering, diversion of electricity and all such and similar matters affecting the distribution and supply of electricity to the consumer.(11)The Commission shall be entitled to authorise the licensees and persons to exercise such power and authority as the licensees and persons could be given under the provisions of the Indian Electricity Act, 1910 and the Electricity (Supply) Act, 1948.
