Section 17 in Karnataka Electricity Reform Act, 1999
17. Regulation of generating companies and stations.
(1)A licensee or a bulk purchaser or any other person may enter into a contract with a generating company for purchase of electricity in the manner approved by the Commission and such approval granted by the Commission shall have the effect of the consent given by the State Government in terms of section 43A of the Electricity (Supply) Act, 1948 :Provided that, the approval granted by the Commission under this sub-section shall not in any manner affect the requirements to obtain approvals and sanctions of the State Government or any other authority under any other law, rule or regulations.(2)The provisions of section 44 of the Electricity (Supply) Act, 1948 shall apply in regard to applications for consent to the establishment or acquisition of a new generating station, or to extend or replace any major unit or plant or works pertaining to generation of electricity in a generating station, to meet the applicant's need for the electricity, subject to the following modifications:-(a)the applicant shall apply for and obtain the prior consent in writing of the Commission in place of the Board;(b)the Commission shall record the reasons for the grant or refusal of the consent.(3)No generating company or generating station, except to the extent of the business of sale of electricity to the bulk purchaser or licensee or to such other person specifically authorised by the Commission, shall engage in the business of sale or supply of electricity or transmission of electricity in the State.(4)No generating company or generating station shall, at any time, without the previous consent in writing of the Commission, acquire by purchase or otherwise the licence or the undertaking of, or associate himself with, so far as the business of generating, transmitting, distribution or supply of energy is concerned, any other licensee or person transmitting, supplying or intending to transmit or supply electricity :Provided that before granting consent the Commission may publish such notices inviting objection as the Commission may specify by regulations.
