Chapter-III- Indian Electricity Rules
Indian electricity rules, 1956
11. Application for licence
(1) Every application for a licence shall be signed by or on behalf of the applicant and addressed to such officer as the State Government may designate in this behalf and it shall be accompanied by-
(a) six copies, in print, of the draft licence as proposed by the applicant, with the name and address of the applicant and of his agent (if any) printed on the outside of the draft;
(b) three copies, each signed by the applicant, of maps of the proposed area of supply and of the streets or roads in which the supply of energy is to be compulsory, which shall be so marked or coloured as to define any portion of such area and streets or roads which are under the administrative control of any local authority and shall be
on a scale-
(i) of not less than 10 centimetres to a kilometre, or
(ii) if no such maps are available, of not less than that of the largest scale ordinance maps available, or
(iii) on such other scales as may be approved by the State Government;
(c) a list of any local authorities invested with the administration of any portion of the area of supply;
(d) an approximate statement describing any lands which the applicant proposes to acquire for the purpose of the licence under the provisions of the Land Acquisition Act, 1894 (1 of 1894)
(e) an approximate statement of the capital proposed to be expended in connection with the undertaking and such other particulars as the State. Government may require;
(f) if the applicant is a company which is registered under any of the enactments relating to companies for the time being in force in India or is a corporation by an Act of the Parliament, a copy of the Memorandum and Articles of Association; and
(g) a treasury receipt for such fee not exceeding fifteen hundred rupees, as the State Government may require, paid into a government treasury in the state concerned, unless such fee is remitted, wholly or in part by general or special order of the State Government.
(2) If the application for a licence is rejected or if a licence is revoked under sub-section (2) of section 4 as to the whole or any part of the area of supply, the State Government may at its discretion refund, wholly or in part, the fee referred to in clause (g) of sub-rule (1).
12.Copies of maps and draft licence for public inspection
The applicant shall deposit at his own office and of his agents (if any) and at the office of every local authority invested with the administration of any portion of the proposed area of supply-
(a) copies of the maps referred to in clause (b) of sub-rule (1) of rule 11 for public inspection; and
(b) a sufficient number of copies of the draft licence to be furnished to all persons applying for them at a price not exceeding twenty-five paise per copy.
13. Contents of draft license
The draft license shall contain the following particulars:
(a) a short title descriptive of the proposed undertaking together with the address and description of the applicant, or in the case of a firm, the .names of all the directors or partners of the firm;
(b ) a statement of the boundaries of the proposed area of supply;
(c) if the generating station is situated or is to be situated outside the area of supply or if any intervening area not included in the area of supply is to be crossed, a list of the streets not included in the area of supply along or across which electric supply lines are to be laid down or placed;
(d) the proposed limits within which and the conditions under which the supply of energy is to be compulsory or permissive, the nature and amount of the supply (if limited) and the like;
(e) a list of the streets (if any) which are repairable neither by the Central or the State Government nor by a local authority and of the railways and tramways (if any) the soil or pavement of which the applicant seeks powers to' open or break up, and the names of the persons, or designations of authorities by whom such streets are repairable or who are for the time being entitled to work such railways or tramways;
(f) the proposed period after which the right to purchase is to take effect;
(g) a statement of any special terms of purchase or orders proposed to be made under section 10; and
(h) any proposed modification of the Schedule to the Act to be made under clause (f) of sub-section (2) of section 3.
14. Form of draft licence
The form of draft licence contained in Annexure III may, with such variation as the circumstances of each case require, be used for the purposes of Rules 11 and 13 and if used, shall be sufficient.
15. Advertisement of application and contents thereof
(1) The applicant shall, within fourteen days from the submission of the application under Rule 11, publish notice of his application by public advertisement, and such advertisement shall publish such particulars as the State Government may specify.
(2) The advertisement shall be headed by a short title corresponding to that given at the head of the draft licence and shall give the addresses of the offices at which, under Rule 12, copies of maps therein referred to may be inspected and the copies of draft licence perused or purchased and shall state that every local authority , company or person, desirous of making any representation with reference to the application to the State Government, may do so by letter addressed to such officer as the State Government may designate in this behalf, within three months of the date of issue of the first advertisement.
(3) The advertisement shall be inserted by the applicant in at least two successive issues of such newspaper as the State Government, having regard to its circulation among persons likely to be interested, may direct, and in the absence of any such direction, in at least two successive issues of any newspaper, published within the proposed area of supply or if there is no such newspaper, in any newspaper published within the State. ,
(4) The applicant shall send a copy of each of the two successive issues of the newspaper containing the advertisement to such officer as the State Government may designate in this behalf as soon as the second issue has appeared and the State Government shall publish the advertisement at least once in the official gazette within six weeks from the date of the first advertisement published under sub-rule (3):
PROVIDED that any failure or delay on the part of the State Government in publishing the advertisement shall not of itself preclude the grant of a licence.
16. Amendment of draft licence
Any person who desires to have any amendment made in the draft licence shall deliver a statement of the amendment to the applicant and to such officer as the State Government may designate in this behalf within the time allowed under sub-rule (2) of Rule 15 for the submission of representations referring to the application.
17. Local inquiries
If any person locally interested objects to the grant of a licence applied for under the Act, the State Government shall, if either the applicant or the objector so desires, cause a local inquiry to be held of which the notice in writing shall be given to both the applicant and the objector:
PROVIDED that, the State Government may refuse such an inquiry if in its opinion the objection is of a trifling or vexatious nature.
18. Approval of draft licence
When the State Government has approved a draft licence, either in its original form or in a modified form, such officer as the State Government may designate in this behalf shall inform the applicant of such approval and of the form in which it is proposed to grant the licence.
19. Notification of grant of licence
On receiving an intimation in writing from the applicant that he is willing to accept a licence in the form approved by the State Government, the State Government shall publish the licence within two months by a notification in the official gazette, together with a statement that it has been granted.
20. Date of commencement of licence
The date of a notification under Rule 19 shall be deemed to be the date of commencement of the licence.
21. Deposit of maps
When a licence has been granted, three sets of maps showing, as regards such licence, the particulars specified in clause (b) of sub-rule (1) of rule 11 shall be signed and dated to correspond with the date of the notification of the grant of the licence by such officer as the State Government may designate in this behalf. One set of such maps shall be retained as the deposited maps by the said officer and of the remaining two sets, one shall be furnished to the State of Electricity Board constituted under Section 5 of the Electricity (Supply) Act, 1948 and the other to the licensee.
22. Deposit of printed copies
(1) Every person who is granted a licence, shall within thirty days of the grant hereof-
(a) have adequate number of copies of the licence printed:
(b) have adequate number of maps prepared showing the area of supply and the compulsory areas specified in the licence;
(c) arrange to exhibit a copy of such licence and maps for public inspection at all reasonable times at his head office, his local offices (if any), and at the office of every local authority within the area of supply.
(2) Every such licensee shall, within the aforesaid period of thirty days, supply free of charge one copy of the licence and the relevant maps to every local authority within the area of supply and shall also make necessary arrangements for the sale of printed copies of the licence to all persons applying for the same, at a price not exceeding twenty-five 1[* * *] paise per copy.
23. Application for written consent of State Government in certain cases.
If a licensee desires the written consent of the State Government under sub section (5) of section 12 to enable him to open or break up the soil or pavement of any street (which is reparable neither by the Central or the State Government nor by a local authority), or any railway or tramway, he shall apply for such consent in writing to such officer as the State Government may designate in this behalf and shall describe accurately the street, railway, or tramway which he seeks power to open or break up and the names of the persons or designations of the authorities by whom such street is reparable or who are for the time being entitled to work such railway or tramway; and the extent to which he proposes to open or break up the same.
24. Amendment of licence
(1) If a licensee desires that any alterations or amendments should be made in the terms and conditions of his licence under 2[sub-section (1) of section 4A] he shall submit a written application to the officer designated by the State Government under
Rule 11 and shall within fourteen days from the submission of the application publish notice of his application by public advertisement; and the provisions of sub-rules (2), (3) and (4) of Rule 15 shall apply to such publication.
(2) The State Government shall within six months of the date of submission of the application, either approve of the alterations or amendments in the form proposed by the licensee, or in any other modified form which he accepts, or rejects them. When the State Government has approved of the alterations, or amendments. either in the form proposed by the licensee or in any other modified form which he accepts, it shall notify the alterations or amendments so approved, in the official gazette
25. Sale of plans
Copies of plans or sections such as are referred to in clause XVI of the Schedule to the Act shall be supplied by the licensee to every applicant at a price not exceeding one rupee per 3[1000 square centimetres].
26. Preparation and submission of accounts
(1) Every licensee, unless exempted under Section 11, shall cause the accounts of his undertaking to be made up to the thirty-first day of March each year.
(2) Such licensee shall prepare and render an annual statement of his accounts in accordance with the provisions of Section 11 within a period of six months from the aforesaid date, or such extended period as the State Government may authorise after it is satisfied that the time allowed is insufficient owing to any cause beyond the control of the licensee; and the statement shall be rendered in quadruplicate if the State Government so desires.
(3) The accounts shall be made up in the prescribed forms set out in Annexure IV and V and shall be rendered in Indian currency.
All the forms shall be signed by the licensee or his accredited agent or manager.
(4) The State Government may, by special or general order direct that in addition to the submission of the annual statements of accounts in the form prescribed in sub rule (3), a licensee shall submit to the State Government or such other authority as it may appoint in this behalf such additional information as it may require for the purpose.
27. Model conditions of supply
(1) Without prejudice to the powers conferred by section 21 on the State Government in this behalf, the model conditions of supply contained in Annexure VI may, with such variations as the circumstances of each case require, be adopted by the licensee for the purpose of sub-section (2) of that section with the previous sanction of the State Government.
(2) The licensee shall always keep in his office an adequate number of printed copies of the sanctioned conditions of supply and shall, on demand,4[sell such copies to any applicant at a price fixed, on cost basis, from time to time].
Rule 27 of the Electricity Rules, 1956 framed under the power conferred by s. 37 of Electricity Act, 1910, provides that without prejudice to the powers conferred by s. 21 on the State Government in this behalf, the model condition of supply contained in Annexure VI may, with such variation, as the circumstances of each case require, be adopted by the licensee for the purpose of sub-s. (2) of that section with the previous sanction of the State Government. Annexure VI to the Rules of 1956 is binding on both the parties and the conditions mentioned therein have to be strictly observed.-Rajasthan State Electricity Board v. Bajrang Lal Khetawat AIR 1987Raj 164.
The deposit made cannot be equated to a fund deposit. In the case of daily supply of electricity there is a consequential liability to pay for each day's consumption of electricity. To ensure that payment, the security deposit is furnished. Hence it cannot be equated to a deposit at all. It is in the nature of a running Current account Ferro Alloys Corporation Ltd. v. APSEB AIR 1993 SC200S
28. Forms of requisitions
Requisitions under sub-clause (4) of clause V or sub-clause (5) of clause VI, as the case may-be; of the Schedule to the Act shall be made in the form set out in Annexure VII or Annexure VIII.
1 Word "naye" omitted vide GSR 256, dt. 26-3-1983.
2 Substituted vide GSR 422,dt.7-4-1960 w.e.f. 16-4-1960.
3 Substituted vide GSR 522, dt.17-3-1970 w.e.f. 4-4-1970.
4 Substituted for "sell such copies to any applicant at a price not exceeding fifty paise per copy" vide GSR 112, dt. 22-3-2000, w.e.f. 1-4-2000.