In the matter of the CERC (Procedure, Terms and Conditions for grant of Trading License and other related matters) Regulations of an Inter- State Trading Licence – EQ
Summary:
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## **Case Summary – Reliance Industries Ltd. (RIL) Trading Licence Application**
**Forum:** Central Electricity Regulatory Commission (CERC), New Delhi
**Petition No.:** 557/TD/2025
**Order Date:** 17 August 2025
**Coram:**
* Jishnu Barua, Chairperson
* Ramesh Babu V., Member
* Harish Dudani, Member
* Ravinder Singh Dhillon, Member
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### **1. Case Background**
* **Petitioner:** Reliance Industries Limited (RIL), Mumbai
* **Nature of Petition:** Application under **Section 14 of the Electricity Act, 2003** and **Regulation 6 of CERC Trading Licence Regulations, 2020** for grant of **Category ‘I’ inter-State trading licence** (highest category, valid 25 years).
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### **2. Petitioner’s Submissions**
* Published public notices on **01.05.2025** in *Indian Express* (multiple editions), *Financial Express* (multiple editions), and *Assam Tribune* (Guwahati).
* **No objections received.**
* **Financial strength:**
* Net worth: ₹4,96,804 lakh (far above required ₹50 crore).
* Current ratio ≥ 1:1 (complied).
* Liquidity ratio < 1:1 (non-compliance).
* Requested Commission to exercise relaxation powers given RIL’s huge net worth.
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### **3. Commission’s Findings**
* **Liquidity ratio condition relaxed** (Order dated 07.07.2025) using Regulation 17, given RIL’s exceptional net worth.
* Directed RIL to **maintain 100% additional net worth** over required threshold throughout licence period.
* **Professional staff requirement met** (experienced senior officials in power trading, finance, regulatory, and commercial domains).
* **MOA includes transmission business**, but RIL undertook **not to engage in transmission** unless it surrenders trading licence.
* Public notice by Commission on 10.07.2025 (Indian Express & Dainik Bhaskar) – **no objections received**.
* Hearing held on 29.07.2025 – Counsel confirmed compliance and undertaking to abide by regulations.
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### **4. Commission’s Decision**
* **Trading Licence Granted:** Category ‘I’ inter-State trading licence across India.
* **Conditions imposed:**
1. Comply with Electricity Act, Rules, CERC Regulations, and orders.
2. Not to undertake transmission business during licence tenure.
3. Trading margin to be per CERC regulations.
4. Maintain net worth, current & liquidity ratios as per 07.07.2025 order.
5. Remain qualified under Trading Licence Regulations.
6. Pay annual licence fees as per CERC Fee Regulations.
7. Licence liable to **revocation** if:
* Non-compliance with Act/Regulations, OR
* No trading activity within 1 year of licence grant.
8. Submit reports/information as required by CERC.
* Order communicated to **Ministry of Power** & **CEA**.
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### **5. Outcome**
* **Petition Allowed.**
* **Reliance Industries Ltd. granted Category ‘I’ inter-State trading licence** valid for 25 years.
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