Section 16 in The Central Electricity Regulatory Commission (Procedure, Terms & Conditions for grant of Transmission License and other related matters) Regulations, 2001
16. Prohibited activities.
- The licensee shall not undertake the following activities during the period of the license:(a)The licensee shall not at any time, without the prior approval in writing of the Commission acquire by purchase or otherwise, or acquire any beneficial interest in, a license or an Undertaking belonging to, or associate himself so far as business of generating, transmitting, distributing or supply of energy is concerned, with another licensee or a person generating, transmitting, distributing, supplying or intending to generate, transmit, distribute or supply electricity.(b)The licensee shall not make use of the assets of the project for a purpose other than transmission of electricity. Provided that where the assets of the project are used for a purpose other than transmission of electricity after obtaining the approval of the Commission, the additional benefits to the licensee accruing from such use, shall be shared by the beneficiaries and the licensee in such manner as may be directed by the Commission.(c)The licensee shall not enter into arrangement with a third party for purchase/sale of electricity for conveyance through the Project without prior permission of the Commission.(d)Any agreement relating to any transaction of the nature described in clauses(a), (b) or (c) hereinabove, unless made with the prior permission of the Commission, shall be void and shall constitute violation of terms and conditions of the license.(e)The licensee shall not, at any time, assign his license or transfer his Undertaking, or any part thereof, by sale, mortgage, lease, exchange or otherwise to any person.Provided that in case of default by the licensee in debt repayment, the Commission may, in consultation with the Central Transmission Utility, assign the license to the nominee of the lenders.(f)The licensee shall not augment/modify any part of the Project except-(i)pursuant to an agreement with the Central Transmission Utility and with the prior permission of the Commission ;(ii)in accordance with the guidelines issued by the Commission.(g)The licensee shall not dispose of or relinquish operational control of the project without the prior approval of the Commission.
