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Indian electricity rules, 1956

[Rule 14]

Model form of draft licence under indian electricity act, 1910
[Section 3]

Electric licence 19 .......

Draft licence


THE ............................................ ELECTRIC LICENCE ................19  Licence for the supply of energy granted by the Government of............... under the Indian Electricity Act, 1910.

Licence is hereby granted to1  ...............(carrying on business in partnership under the name and style of) to supply electrical energy in the area2, with the powers and upon the terms and conditions specified below:

1. Short title

This licence may be cited as "The 3 Electrical Licence, 19 ...................................

2. Interpretation

In this licence-

(1) "The Act" shall mean the Indian Electricity Act, 1910.

(2) The expression "the licensee" shall mean and include the said, 4 and their (or his) assigns; and

(3) The expression "deposited maps" shall mean the plans of the area of supply hereinafter specified which has been deposited with Government in pursuance of the rules under the Act, which plans are signed for the purpose of identification by the Secretary to the Government of .............Annexure Iin the...........Annexure I Department and by the applicants under the name and style of........Annexure I

 (4) Other words and expressions have the same meanings as are assigned to them in the Act or the rules made thereunder.

3. Security5

(1) The period within which, under clause 1(a) of the Schedule to the Act, the licensee shall show that he is in a position fully and efficiently to discharge the duties and obligations imposed on him shall be..........

 (2) The period within which, under clause 1(b) of the Schedule to the Act the licensee shall deposit or secure such sum as therein mentioned, and the sum so to be deposited or secured, shall, unless otherwise ordered by the Government under that clause, be ..............and Rupees .................respectively.

4. Area of Supply6

The area within which the supply of energy is authorised by the licence (the area of supply) under the Act is the whole of the area bounded as follows:-

West -By

the boundaries whereof are delineated in the deposited maps.

5. Power to lay mains outside area of supply7

The licensee may lay down or place electric supply-lines for the conveyance and transmission of energy from a generating station situated or to be situated at............. outside the area of supply to the boundary of the area of supply.

6. Limits within which supply energy is compulsory8

(1) The works to be executed to the satisfaction of the Government under clause IV of the Schedule to the Act are the following, namely9

(2) If the licensee fails to comply with the provisions of sub-clause (1), the licence may be revoked 10

7. Nature of supply

 (1) The nature of supply shall be............... or such other as State Government may allow.

8. Breaking up of streets, railways and tramways11

The licensee is specially authorised to open and break up the soil and pavement of the following streets or parts of streets which are not repairable by the Government or by a local authority , and of the following railways and tramways or parts of railways and tramways, namely:-

(a) Streets. 
(b) Railways.12
(c) Tramways.12

9. Appointment of electrical engineer

The licensee shall employ a resident electrical engineer in technical charge of the undertaking, possessing a recognised degree or diploma in electrical engineering from a recognised university or college or qualifications equivalent to such degree or diploma and such practical experience as the State Government may specify in this behalf.

10. Purchase of undertaking

(1) The option of purchase given by sub-section (1) of section 6 of the Act shall be exercisable on the expiry of a period of 20 years, i.e., from the date of the notification of this licence and the expiry f every subsequent period of 10 years.13 The terms of such purchase shall be14.  The percentage of the value to be determined with and for the purpose of sub-sections (1) and (2) of section 7A of the Act, of the lands, building works, materials and plant of the licensee therein mentioned to be added under the proviso to sub-section (4) of section 7A to such value on account of compulsory purchase shall be..............per cent.

(2) In accordance with clause (d)(ii) of sub-section (2) of section 3 of the Act, it is hereby declared that the generating station to be used in connection with the undertaking shall not form part of the undertaking for the purpose of purchase under section 5 or section 6 15.

11. Additions to, variations from, and exceptions from the Schedule to the Act16

(1) In pursuance of clause (f) of sub-section (2) of section 3 of the Act, it is hereby expressly declared that the provisions contained in the Schedule to the Act shall for the purpose of this licence be supplemented by the addition of the following clauses, namely:-16

(2) In pursuance of clause (f) of  sub-section 3 of the Act, it is hereby expressly declared that the clause / clause of the Schedule to the Act, mentioned below shall be varied in the manner hereinafter indicated, namely17: 

(3) In pursuance of clause (f) of sub-section(2) of section 3 of the Act, it is hereby expressly declared that the clause / clauses17........................... of the Schedule to Act shall be excepted from incorporation in this licence.

Note: In the preparation of a draft licence the above model form may be varied, or added to, by the applicant so far as the Act and rules admit.

Rule Nos. 11 to 15 (inclusive), as to applications for licences, should be consulated. In drawing up a draft licence the attention of the applicant is more particularly directed to the following sections of the Act, viz., 3,4,6,10, 11,12,21,22, 22A, 228,23,27 ,51 and 57; the powers under section 51 can only be conferred after the grant of the licence.

In the case of licences for bulk supply, see clause IX of the schedule to the Act and the proviso to clause (f) sub-section (2) of Section 3 of the Act, also clause (b) of section 10 of the Act.

Signature of Applicant or his agent (if any)
Address of applicant

1. The licensee may be any local authority, company or individual. In the case of firm, give names of all the directors or partners.
2. See clause 4.
3. Short title to agree with heading.
4. Names of all the directors or partners as in the preamble in the case of a firm.
5. See section 4(1)(c) of the Act and Clause I of the Schedule to the Act.
6. The area for which each local authority is constituted should be distinctly marked or coloured. See Rule 11(1)
7. This clause should be retained only where the licensee is to supply energy from outside the area of supply. Where power to cross an intervening area is sought under section 3(1) of the Act, enter details here.
8. See section 3(2)(d) of the Act.
9. It is open to the licensee to propose a" compulsory area" or the State Government to make provision
for such an area. Ordinarily it will be sufficient to enter here the names of "compulsory street" in
which the licensee will lay distributing mains. If no compulsory works are specified in the licence,
the State Government may subsequently direct that works are to be executed; see clause IV of the
Schedule to the Act.
10. See note to sub-clause (1) of this clause.
11. This clause to be omitted if no such powers are required in the licence, See section 12(5) of the Act
and proviso to the same. Powers can be obtained subsequently; see Rule 23.
12. In ordinary cases the level-crossings or points at which interference is proposed must be specified.
13. The periods after which an option to purchase arises may be less than 20 and 10 years, respectively.
14. The terms must not differ from those laid down in the Act unless the powers of s. 10 are invoked to
modify or cancel them.
15. The generating station or stations belonging to the licensee should ordinarily be included except
where they from part of a traction undertaking previously authorised.
16. To be omitted if not required in any draft licence.
17. The latter part of the clause may require modification according to the circumstances.

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