In the matter of the CERC (Procedure, Terms and Conditions for grant of trading licence and other related matters), Regulations, AGEPL for grant of ISTL – EQ
Summary:
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#### 1. **Parties Involved**
* **Regulatory Authority:** Central Electricity Regulatory Commission (CERC), New Delhi.
* **Applicant (Petitioner):** ACME Greentech Eighth Private Limited (AGEPL).
* **Bench:** The order was passed by a three-member bench consisting of Chairperson Shri Jishnu Barua and Members Shri Harish Dudani and Shri Ravinder Singh Dhillon.
#### 2. **Purpose of the Petition**
AGEPL filed an application under **Sections 14 and 15(1) of the Electricity Act, 2003** and the **CERC (Procedure, Terms and Conditions for grant of trading licence) Regulations, 2020** to obtain an **inter-state trading license**.
#### 3. **Key Steps and Findings in the Process**
The order details a thorough, multi-stage approval process:
* **Public Notice:** As required by law, the petitioner published a public notice in major newspapers (**Business Standard** and **Indian Express**) across multiple cities on **August 14, 2025**. **No objections** were received from the public.
* **Preliminary Scrutiny (Order dated Oct 6, 2025):** The CERC conducted an initial examination and found the petitioner *prima facie* qualified. Key findings included:
* **Financial Eligibility:** The company’s audited balance sheet (as of July 21, 2025) showed a net worth of at least **₹10 Crore** and maintained the required **current and liquidity ratios of 1:1**, meeting the criteria for a Category IV license.
* **Personnel Eligibility:** The company employed qualified full-time professionals with experience in power system operations and finance/commerce, as mandated.
* **Business Scope:** The company affirmed it would **not engage in the transmission business** while holding the trading license.
* **Commission’s Proposal & Final Public Notice:** Based on the preliminary findings, the CERC proposed to grant the license and published a second notice in the **Times of India** and **Dainik Bhaskar** on **October 8, 2025**. Again, **no objections or suggestions** were received.
* **Final Hearing:** A hearing was held on **October 27, 2025**, where the petitioner’s counsel confirmed no objections were received and committed to complying with all regulations for the license’s 25-year term.
#### 4. **Final Decision and Conditions**
The CERC, satisfied that AGEPL met all requirements, **allowed the petition** and granted the **Category ‘IV’ inter-state electricity trading license**.
The grant is subject to several stringent conditions, including:
* **Continuous Compliance:** The licensee must comply with the Electricity Act, CERC Regulations, and all orders/directions at all times.
* **No Transmission Business:** The company is prohibited from engaging in electricity transmission for the duration of the license.
* **Financial Health:** Must maintain the prescribed net worth and financial ratios.
* **Trading Margin:** Must charge trading margins strictly as per regulations.
* **Commencement of Business:** Must start trading electricity **within one year**, or the license becomes liable for revocation.
* **Annual Fees:** Must regularly pay the annual license fee.
#### 5. **Administrative Directives**
A copy of the order was to be sent to the **Ministry of Power** and the **Central Electricity Authority** for their information and records, as required by law.
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