IN RE: VEDPRAKASH POWER PRIVATE LIMITED Vs. STATE

JUDGEMENT

(1.) THE applicant, Vedprakash Power Private Limited, Mumbai, a company registered under the Companies Act, 1956 (1 of 1956) has made the present application under sub -section (1) of Section 15 of the Electricity Act, 2003 (36 of 2003) (hereinafter referred to as "the Act") read with Central Electricity Regulatory Commission (Procedure, Terms and Conditions for grant of Trading licence and other related matters) Regulations, 2009 (hereinafter referred to as "the Trading Licence Regulations") amended from time to time, for grant of Category 'IV' licence for inter -State trading in electricity in whole of India. The notices in accordance with sub -section (2) of Section 15 of the Act read with Clause (4) of Regulation 6 of the trading licence regulations were published by the applicant on 9.3.2013. In response to the said public notice, no objections have been received. In accordance with Regulation 3 (3) of the trading licence regulations, a person applying for Category 'IV' trading licence should have net worth of Rs. 1 crore, and should have maintained minimum current ratio and liquidity ratio of 1:1, as on the date of the audited balance sheet accompanying the application. The applicant was incorporated on 22.6.2011. Based on special balance sheet as on 1.6.2013, it was established that the applicant had the required net worth, current ratio and liquidity ratio for grant of Category 'IV' trading licence. Accordingly, the Commission came to the conclusion that the applicant prima -facie qualified for grant of licence for inter -State trading in electricity as a category 'IV' electricity trader.

(2.) ON the above considerations, the Commission vide its order dated 23.7.2013 had proposed to grant Category 'IV' trading licence to the applicant. A notice under clause (a) sub -section (5) of Section 15 of the Act was published on 28.7.2013 in all editions of Times of India and Amar Ujala inviting suggestions/objections to the above proposal of the Commission. No suggestions or objections have been received in response to the notice issued by the Commission.

(3.) ON consideration of the materials on record, we are satisfied that the applicant company meets the requirements of the Act and the trading licence regulations for grant of inter -State trading licence for Category 'IV'. Accordingly, we direct that Vedprakash Power Private Limited be issued a Category 'IV' licence for inter -State trading in electricity in whole of India.