In the matter of Inter-State trading licence in electricity from Category ‘III’ to Category ‘II’ of the CERC (Procedure, Terms and Conditions for grant of Trading license and other related matters) Regulations – EQ
Summary:
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## **Background**
* **Petitioner**: *JSW Power Trading Company Limited (JSWPTCL)*.
* **Subject**: Application for upgradation of its **Inter-State Electricity Trading Licence** from **Category ‘III’ to Category ‘II’** under the **CERC Trading Licence Regulations, 2020**.
* **History**:
* 2006: Granted Category ‘F’ licence (later reclassified as Category ‘I’ in 2010).
* 2017–2019: Transferred to *JSW Green Energy Ltd.*, then renamed back to JSWPTCL.
* 2020: Downgraded to Category ‘IV’.
* 2024: Upgraded from Category ‘IV’ to ‘III’.
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## **Petitioner’s Submissions**
* Power demand, exchange competitiveness, and market growth necessitate licence upgradation.
* Intends to trade up to **7,000 MUs annually**.
* Trading volume exceeded the prescribed **110% threshold under Regulation 9(3)** in FY 2024–25.
* Already deposited **₹9,00,000** towards the differential licence fee between Category ‘II’ and ‘III’.
* Filed audited special balance sheet as on **31.03.2025** to meet net worth requirements.
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## **Hearing & Regulatory Provisions**
* Hearing held on **29.07.2025**; Commission directed submission of audited balance sheet.
* Relevant Provisions:
* **Regulation 9(4) & 15**: Allow upgradation upon meeting volume/net worth conditions.
* **Net Worth Requirement for Category ‘II’**: Minimum **₹35 crore**.
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## **Financial Assessment (as per Special Audited Balance Sheet, 31.03.2025)**
* **Net Worth**: ₹17,813.25 lakh (≈ ₹178.13 crore).
* **Current Ratio**: 2.01
* **Liquidity Ratio**: 2.00
* **Key Assets & Liabilities** (*page 6–7 tables*):
* Paid-up equity capital: ₹17,813.25 lakh.
* Non-current investments: ₹4,522.58 lakh.
* Current assets: ₹40,153.93 lakh (including trade receivables of ₹10,288.09 lakh & cash of ₹5,852.63 lakh).
* Current liabilities: ₹26,201.30 lakh.
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## **Commission’s Findings**
* Petitioner fulfils all **technical and financial requirements** for a Category ‘II’ licence.
* Net worth, current ratio, and liquidity ratio are **well above regulatory thresholds**.
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## **Decision**
* Petition **allowed**.
* Licence upgraded from **Category ‘III’ to Category ‘II’**, effective from the date of order.
* Applicant bound by conditions from prior licence (16.02.2024 order in Petition No. 371/TD/2023).
* Copy to be sent to **Ministry of Power** and **Central Electricity Authority**.
* Licence endorsement to be updated to reflect new category.
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