Section 12 in Andhra Pradesh Provisional Transmission and Bulk Supply Licence, 1999
12. Capacity procurement Procedure.
(1)The licensee may not enter into any new arrangement to purchase electricity or arrangements for the construction of additional generation capacity, without an authorisation granted by the State Government prior to the constitution of the Commission, and thereafter by the Commission under the terms of this paragraph.(2)An authorisation required under paragraph 12.1 will be granted when the licensee demonstrates to the satisfaction of the State Government or the Commission as the case may be, that-(a)there is need for the additional power which it proposes to purchase.(b)the licensee has examined the economic, technical, system and environmental aspects of all available alternatives to the proposals for purchasing additional electricity including arrangements for reducing the level of demand and such examination has been carried out in the manner approved by the State Government or the Commission as the case may be, and(c)The licensee will obtain tenders from independent power producers and other parties, specifying the prices and other terms on which they will sell electricity or construct and operate generating plant, the obtaining of such tenders to be in a manner approved by the State Government prior to the constitution of the Commission, and thereafter by the Commission.(3)The restrictions imposed in Paragraphs 12(1) and 12(2) shall not be applicable for short term (less than 6 months) purchases;Provided that the details of such purchases shall be submitted to the Commission within 30 days of concluding arrangement for such short term purchases, except that the Commission may issue general or special orders to regulate such short term purchases.
