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21. On 1-2-1999 the Government of Andhra Pradesh granted APTRANSCO a provisional license under Section 14(4) of the Reform Act to engage in business of "Transmission and Bulk Supply" and "Distribution and Retail Supply". The validity of the provisional license was for a period of 12 months or on date notified by the Commission under Section 14(4)(b) of the Reform Act, whichever was earlier. On 10-9-1999 the APTRANSCO submitted a draft license to the Commission as required under Section 14(4) (a) for grant of license to engage in the business of Transmission and Bulk Supply of Electricity and another draft license for grant of license to engage in the business of Distribution and Retail Supply of Electricity and these draft licenses were numbers as OP No.3 of 1999 and OP No.4 of 1999 respectively. On 9-10-1999 the Commission communicated to the APTRANSCO the guidelines for filing of "Expected Revenue from Charges" and Tariff Application for 2000-2001 as required under Section 28(1) of the Reform Act. In October, 1999, the Commission issued a draft document for public circulation entitled "Issues of Tariff Philosophy" and the public were invited for sending written comments on the same. The Commission, in October, 1999, also framed "Guidelines for Revenue and Tariff Filing" separately for the Transmission and Bulk Supply Licenses and the Distribution and Retail Supply Licenses containing the manner in which revenue and tariff filings before the Commission were to be made and the terms and conditions thereof. On 29-12-1999 the AP TRANSCO, as the provisional license holder, filed its Expected Aggregate Revenue from Charges (ERC) as required under Section 26(5) of the Reform Act separately for the Transmission and Bulk Supply activity and the Distribution and Retail Supply activity and the same are numbered as OP Nos.205 of 2000 and 206 of 2000 respectively. On 31-1-2000 the Commission issued to AP TRANSCO two separate licenses, License No.1 of 2000 for Transmission and Bulk Supply and License No.2/2000 for Distribution and Retail Supply. The licenses issued contemplate the Transmission and Bulk Supply as a distinct and separate licensed activity from the Distribution and Retail Supply, and accordingly stipulate for separation of assets, accounts and also contemplate the establishment of separate tariffs for the two separate licensed activities. Further on 31-1-2000 itself, the State Government issued G.O. Ms. No.11 Energy (Power III) making amendments to Transfer Rules so as to modify Part-11 of the schedule to the Transfer Rules and consequently altering the values of the assets and liabilities indicated therein. In view of the provision of Section 23(6)(f) read with Rule 10 of the Transfer Rules, the scheme in the Transfer Rules as amended became final with effect from 1-2-2000. On 7-2-2000 the Commission directed the AP TRANSCO to provide information and finalise the transfer scheme contained in the Transfer Rules in the aforesaid notification dated 31-1-2000. By G.O. Ms. No.31 Energy (Power III) dated 27-3-1999, the State Government approved the constitution of four separate and independent distribution companies thereinafter called "DISCOMs") and the AP TRANSCO was required to take further steps to incorporate the said companies. At the meeting of the Board of Directors of AP TRANSCO held on 27-3-2000, it was resolved that AP TRANSCO apply for registration of the said DISCOMs under the Companies Act, 1956 and attend to the matters incidental thereto. On 30-1-2000 four DISCOMs were incorporated. On 31-3-2000 the AP TRANSCO made an application to the Commission under para 5.4 of AP TRANSCO Distribution and Retail Supply license for permission to assign the Distribution and Retail Supply functions to the four DISCOMs. On 31-3-2000 the Commission by its proceedings APERC/Secy/Engg/No.6 granted approval to AP TRANSCO to assign the Distribution and Retail Supply functions to the four DISCOMs.