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State of Haryana - Section

Section 118 in Regular Licence under Haryana Electricity Regulatory Reforms Act

118. Objection.

- First, Gurgaon CCI argued that the words "without prior permission of the HERC" should be deleted from Condition 7, which deals with prohibition of subsidies among separate businesses. The intervenor argues that without that change, it appears that the bulk supplier can deliver energy at subsidised rates if permitted by the Commission, even if it is not pursuant to a directive issued by the State Government under Section 12(3) of the Act. The reason put forward by the intervenor for the suggested change is that in order to maintain commercial viability of bulk suppliers and also keeping in mind the harmful effects of permitting non-reimbursed subsides, it should be made categorical once and for all that no subsidy whatsoever would be permissible, unless the State Government undertakes to reimburse the same within a fixed time frame (not exceeding 90 days).