In the matter of the CERC (Procedure, Terms and Conditions for grant of trading license and other related matters), Regulations, for grant of an inter-State trading licence – EQ
Summary:
—-
#### 1. Objective of the Petition
KPI Green Energy Limited has applied for a **Category ‘IV’ inter-State trading licence**. This licence would permit the company to trade electricity across state boundaries anywhere in India. Category IV is for larger traders, with higher net worth requirements compared to lower categories.
#### 2. Regulatory Framework
The application was filed under:
– **Section 14** of the Electricity Act, 2003 (which empowers CERC to grant licences).
– The **Central Electricity Regulatory Commission (Procedure, Terms and Conditions for grant of trading license and other related matters) Regulations, 2020** (Trading Licence Regulations).
#### 3. Eligibility & Compliance Status
After reviewing the application and subsequent affidavits, CERC found that the Petitioner meets the key requirements of the Trading Licence Regulations:
– **A. Net Worth (Regulation 3(1) & 3(3)):** For a Category IV licence, the applicant must have a net worth of **Rs. 10 Crores**. Based on the audited special balance sheet dated **August 31, 2025**, the Petitioner’s net worth is **Rs. 2,13,902.80 Lakhs (approx. Rs. 2,139 Crores)** , far exceeding the minimum requirement.
– **B. Current Ratio & Liquidity Ratio (Regulation 3(3)):** The applicant must maintain a minimum ratio of 1:1. As of the same balance sheet, KPIGEL has a current ratio of **2.30** and a liquidity ratio of **1.78**, comfortably meeting the criteria.
– **C. Full-time Professionals (Regulation 3(2)):** The licensee must employ at least one full-time professional with experience in power system operations and commercial/financial aspects. The Petitioner submitted a list of five key full-time personnel (including a Group CEO, COO, and CFO) with decades of combined experience in the power and renewable energy sector, which the Commission accepted.
– **D. Authorisation (Memorandum of Association):** The company’s MoA permits it to undertake electricity trading.
– **E. No Transmission Business:** The Petitioner provided an affidavit confirming that it does not hold a transmission licence and will not engage in transmission business while holding a trading licence.
#### 4. Procedural Issue: Delay in Public Notice
– **Requirement:** Regulation 6(3) mandates that an applicant must publish a notice of its application in newspapers within 7 days of filing.
– **Compliance:** The petition was filed on September 26, 2025, but the notices were published on December 6, 2025—a delay of approximately two months.
– **Outcome:** The Petitioner explained the delay was in “good faith” and caused no harm. No public objections were received. The Commission **condoned the delay** but issued a strict warning to comply with all regulations “in letter and spirit” in the future.
—-
For more information please see below link:
