Petition No. 94/2005. Case: In Re: Essar Electric Power Development Corporation Limited Vs. Central Electricity Regulatory Commission

Case NumberPetition No. 94/2005
Party NameIn Re: Essar Electric Power Development Corporation Limited Vs
JudgesAshok Basu, Chairperson, K.N. Sinha, Bhanu Bhushan and A.H. Jung, Members
IssueCompanies Act, 1956; Electricity Act, 2003 - Section 15, 15(1), 15(2) and 15(5); Central Electricity Regulatory commission (Procedure, Terms and Conditions for grant of Trading licence and other related matters) Regulations, 2004 - Regulations 4 and 6
Judgement DateNovember 11, 2005
CourtCentral Electricity Regulatory Commission

Order:

Ashok Basu, Chairperson, K.N. Sinha, Bhanu Bhushan and A.H. Jung, Members, (New Delhi)

  1. The applicant, a company registered under the Companies Act, 1956 has made the present application under Sub-section (1) of Section 15 of the Electricity Act, 2003 (the Act) for grant of licence for inter-state trading in electricity in whole of India, except the State of Jammu & Kashmir for trading of 500 Million Units in a year. The memorandum of association of the applicant covers trading in electricity as one of its main objects. The notices under Sub-section (2) of Section 15 of the Act read with Clause (4) of Regulation 4 of the CERC (Procedure, Terms and Conditions for grant of Trading licence and other related matters) Regulations, 2004 have been published. No objections had been received on the public notice.

  2. The application was heard on 25.10.2005. By its order dated 25.10.2005, the Commission had directed the applicant to file the annual report for the year 2004-05 and also the special balance sheet/profit and loss account as at 10th August 2005 and affidavit to the effect that it would not make an application to undertake transmission in electricity as a transmission licensee (inter-state or intra-state) without surrendering the trading licence if granted by Commission.

  3. The applicant has filed the details on affidavit.

  4. As per Regulation 6, the net worth of the electricity trader at the time of filing of application should not be less than Rs. 7.50 crore in case of the applicant proposing to trade up to 500 Million Units of electricity in a year.

  5. The applicant has submitted its net worth values for the last 5 years beginning from 1999-2000 as under:

       

    (Rs. in lakh) 

    S.No  

    Years  

    Net worth  

       

    1  

    1999-00  

    (-) 289920  

       

    2  

    2000-01  

    (-) 300070  

       

    3  

    2001-02  

    (-) 304230  

       

    4  

    2002-03  

    191540  

       

    5  

    2003-04  

    178275  

       
  6. From the annual reports of the applicant company, its net worth values have been worked out as detailed below:

             

    (Rs in lakh)  

    S.No.  

    Year  

    2000-01 

    2001-02 

    2002-03 

    2003-04 

    2004-05 

    As on 12.8.2005 

    Share Capital  

               
     

    Paid up equity capital  

    0.00070 

    0.00070 

    5.00 

    5.00 

    5.00 

    785.00 

    Reserves and Surplus  

               
     

    Share Premium Account  

       
     

    Surplus in P/L A/C 

       
     

    Sub-Total 2  

       
     

    Less:  

               

    Miscellaneous Expenses to the extent not written off or adjusted  

    3.00 

    3.04 

    3.08 

    3.22 

    17.28 

    17.28 

     

    Net Worth(l +2-3)  

    (3.00) 

    (3.04) 

    1.92 

    1.78 

    (12.28) 

    767.72 

  7. It is noted that the above net worth is represented by the following assets and liabilities:

             

    (Rs in lakh)  

    S.No. 

    Year  

    2000-01  

    ...

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