In the matter of the CERC (Procedure, Terms and Conditions for grant of Trading Licence and other related matters) Regulations of inter- State trading licence – EQ
Summary:
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**Central Electricity Regulatory Commission (CERC)**
**Organisation:** Central Electricity Regulatory Commission (CERC) [cite: 113]
**Petition No.:** 445/TD/2025 [cite: 115]
**Subject:** Application for the grant of an inter-State Category ‘IV’ trading licence for electricity[cite: 122, 133].
**Petitioner:** Mahagenco Renewable Energy Limited [cite: 125, 130]
**Date of Order:** August 31, 2025 [cite: 120]
**1. Project Details**
**Scope:** The petitioner, Mahagenco Renewable Energy Limited, applied for a Category ‘IV’ trading licence to trade electricity on an inter-State basis throughout India[cite: 133].
**Application:** The application was made under Section 14 of the Electricity Act, 2003, and Regulation 6 of the CERC (Procedure, Terms and Conditions for grant of Trading Licence and other related matters) Regulations, 2020[cite: 122, 130, 133].
**2. Hearing and Directives**
**Coram:** The order was passed by Shri Jishnu Barua (Chairperson), Shri Ramesh Babu V. (Member), Shri Harish Dudani (Member), and Shri Ravinder Singh Dhillon (Member)[cite: 117, 118, 119].
**Proceedings:** During hearings on June 20, 2025 [cite: 134] [cite_start]and July 31, 2025[cite: 138], the Commission reviewed the application. [cite_start]The petitioner clarified a few points and submitted an affidavit stating they would not engage in the transmission business if the licence was granted[cite: 136, 137, 207]. [cite_start]They also confirmed that their Memorandum of Association permits electricity trading[cite: 164].
* **Financial and Professional Requirements:**
The petitioner’s net worth as of February 28, 2025, was ₹102,235.13 thousand, which exceeds the required ₹3 crores for a Category ‘IV’ licence[cite: 175, 178, 183, 196].
Their current ratio and liquidity ratio were both 204.95, satisfying the minimum requirement of 1:1[cite: 177, 196].
The company has the required full-time professionals, including a Chief General Manager and a Deputy General Manager (Finance and Accounts) with relevant experience[cite: 197, 198, 200].
**Commission’s Findings:** The Commission found that the petitioner meets all the requirements for a Category ‘IV’ trading licence[cite: 209]. [cite_start]They proposed to grant the licence and directed that a notice be issued to invite further suggestions or objections from the public[cite: 210, 211].
**3. Next Hearing**
* [cite_start]The petition is scheduled for a final hearing on September 23, 2025[cite: 212].
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