Section 21 in The M.P. Vidyut Sudhar Adhiniyam, 2000
21. Restrictions of Licensees and Generating Companies.
(1)No licensee or generating company 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 with, so far as the business of generation, transmission, sub-transmission, distribution or supply of electricity is concerned, any other licensee or person generating, transmitting, supplying or intending to generate, transmit or supply electricity :Provided that, before applying for such consent, the licensee shall give not less than one month's notice of the application,-(a)to the Commission, and(b)if the licensee holds a supply licence, to every local authority both in the licensee's area of supply and also in the area, if any, in which such other person supplies, or intends to supply electricity.Explanation. - For the purpose of this section, a person shall be deemed to be associated with another if he is connected with the other by reasons of ownership, management or in any other manner and is in pursuit of a joint business interest with the other.(2)The licensee shall not, at any time, assign his licence or transfer his undertaking, or any part thereof, by sale, mortgage, lease, exchange or otherwise without the previous consent in writing of the Commission.(3)The provisions of Section 44 of the Electricity (Supply) Act. 1948 (No. 54 of 1948) shall apply in the State after the coming into force of this Act with the following amendments :-(a)that the consents required in the said section shall be taken from the Commission, instead of such consents to be obtained from the Board as provided under that section;(b)notwithstanding anything contained in clauses (a), (b) and (c) of the proviso to sub-section (1) of the said Section 44, the Commission shall have the right to refuse the consent if in the opinion of the Commission, that the Grant of consent will adversely affect the operation of the power system or the development of the electricity industry in the State in an efficient manner or otherwise the public interest; and(c)the provisions of sub-section (3) of said Section 44 will have no application in the State.(4)A holder of a supply licence may, unless expressly prohibited by the terms of its licence or by a general or special order passed by the Commission, enter into arrangements for the purchase of electricity from,-(a)the holder of a supply licence which permits the holder of such licence to supply electricity to other licensees for distribution by them; and(b)any generating company or other supplier of electricity in accordance with the regulations prescribed by the Commission governing the power purchase procurement process.(5)Any agreement relating to any transaction of the nature described in sub-section (1), (2), (3) or (4) unless made with, or subject to the provisions contained in the said provisions, shall be void.
