In the matter of Application of the CERC (Procedure, Terms and Conditions for grant of trading license and other related matters), Regulations, 2020 for Energyminds Power Solutions Private Ltd – EQ

Summary:

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## ⚖️ **Overview**

**Issuing Authority:** Central Electricity Regulatory Commission (CERC), New Delhi
**Petition No.:** 778/TD/2025
**Date of Order:** 6 October 2025
**Coram:**

* Shri Jishnu Barua, Chairperson
* Shri Ramesh Babu V., Member
* Shri Harish Dudani, Member
* Shri Ravinder Singh Dhillon, Member

**Petitioner:** *Energyminds Power Solutions Private Limited (EPSPL)*
**Address:** C-507, Urbtech Trade Centre, Sector 132, Noida, Uttar Pradesh – 201306

**Subject:** Application under **Sections 14 and 15(1)** of the *Electricity Act, 2003* read with **Regulation 6** of the *CERC Trading Licence Regulations, 2020* for the grant of an **Inter-State Trading Licence (Category V)** across India.

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## 🧾 **Background and Context**

The petitioner, **Energyminds Power Solutions Pvt. Ltd.**, a company registered under the *Companies Act, 2013*, applied for a **Category V trading license** for conducting inter-State electricity trading across India.
The petition follows **CERC’s Trading Licence Regulations, 2020**, which stipulate detailed financial, technical, and procedural requirements for applicants.

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## ⚙️ **Legal Basis**

* **Electricity Act, 2003**: Sections 14 and 15 (licensing provisions)
* **CERC Trading Licence Regulations, 2020**: Regulation 6 (procedure for grant)
* Application submitted using **Form I**, along with all annexures, fees, and public notice compliance.

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## 📣 **Public Notice & Compliance**

EPSPL complied with all procedural requirements under Regulation 6:

* Uploaded its **complete application** and annexures on its company website.
* Published notices on **6 August 2025** in:

* *Business Standard* (Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Mumbai)
* *Times of India* (Bhopal, Chandigarh, Delhi, Hyderabad, Kolkata)
* Filed affidavit confirming publication and **reported no objections** received from the public.

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## 🧮 **Financial Eligibility**

As per **Regulation 3(3)** of the 2020 Regulations, a Category V licensee must have:

* **Net Worth ≥ ₹2 crore**
* **Current Ratio ≥ 1:1**
* **Liquidity Ratio ≥ 1:1**

### **EPSPL’s Financial Summary (as on 27 July 2025)**

| **Parameter** | **Value (₹)** |
| ———————————- | ————— |
| **Paid-up Equity Capital** | 2,71,48,145 |
| **Free Reserves & Surplus** | 0 |
| **Loans & Advances to Associates** | 0 |
| **Deferred Expenditure** | 0 |
| **Net Worth** | **₹2.71 crore** |
| **Current Ratio** | **127.69** |
| **Liquidity Ratio** | **127.69** |

> 💡 *The figures on pages 7–9 (supported by balance sheet tables) confirm that EPSPL’s financial strength far exceeds the regulatory requirement for Category V licences*.

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## 🏢 **Corporate Authorization**

Clause 3(a)(1) of EPSPL’s **Memorandum of Association (MoA)** expressly authorizes:

* Trading of electricity and energy in all forms.
* Operation in power exchanges and derivative markets.
* Entry into energy conservation and banking contracts.
* Provision of consultancy and advisory services in energy trading.

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## 📊 **Key Financial Structure (Page 7–8)**

| **Assets & Liabilities Breakdown** | **Amount (₹)** |
| ———————————- | ————— |
| Tangible Assets | 40,00,000 |
| Other Non-Current Assets | 4,34,300 |
| Cash & Cash Equivalents | 2,29,84,845 |
| Short-Term Provisions | 1,80,000 |
| **Total Net Worth** | **2,71,48,145** |

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## ⚖️ **Commission’s Observations & Findings**

1. The petitioner fulfilled **all procedural, financial, and professional** prerequisites under *Trading Licence Regulations, 2020*.
2. **No public objections** were received.
3. **Financial position** (₹2.71 crore net worth) and liquidity ratios (127.69) are significantly above minimum thresholds.
4. EPSPL’s MoA legally authorizes it to undertake electricity trading.
5. EPSPL has undertaken **not to engage in transmission business** without surrendering the trading licence.

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## 📢 **Commission’s Decision**

After examination, CERC concluded:

> “The Commission proposes to grant a **Category ‘V’ Inter-State Electricity Trading Licence** to *Energyminds Power Solutions Private Limited*.”

* Directed issuance of **public notice under Section 15(5)(a)** inviting further objections or suggestions.
* Scheduled **final hearing for 22 October 2025**.
* Pending that, the Commission recorded EPSPL’s compliance with all regulations.

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## ✅ **Summary Table**

| **Aspect** | **Details** |
| —————————– | ——————————————– |
| **Petitioner** | Energyminds Power Solutions Pvt. Ltd. |
| **License Type** | Category V (Inter-State Electricity Trading) |
| **Net Worth** | ₹2.71 crore |
| **Liquidity & Current Ratio** | 127.69 |
| **Compliance** | Fully compliant with Reg. 3(2) & 3(3) |
| **Hearing Outcome** | Proposal to grant licence issued |
| **Next Hearing** | 22 October 2025 |
| **Condition** | Not to engage in transmission activities |

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