The Bihar Gazette

20 · CHAITRA 1928 (S)

1 · Short Title, Extent and Commencement

2 · Definitions and Interpretation

3 · Application for grant of Transmission Licence:

4 · Recommendations of State Transmission Utility (STU)

5 · Acknowledgment of Application

6 · Calling for additional information

7 · Intimation regarding due filing of the application

8 · Publication of notice of application

9 · Service of notice of the application

10 · Public Inspection of Application and Documents

11 · Objections

12 · Hearing and local inquiry

13 · Grant of Transmission Licence

14 · Date of commencement and duration of licence

15 · Deposit of maps and proforma:

16 · Deposit of printed copies of licence :

18 ·

19 · Revocation of the Transmission Licence:

20 · Deemed grant of the Transmission Licence:

21 · Savings

22 · Power to Remove Difficulties

23 · Power to Amend

12 · Details of Financial Data of Applicant

19 · In case the Applicant proposes to tie up with some other Agency for equity, then name & address of such agency :

1 · 1 The Bihar Electricity Regulatory Commission under Section 14 of the Electricity Act, 2003 hereby grants this licence to M/s. _______________________________ having its registered office at____________________ to construct, maintain and operate intra-state transmission lines, substations and associated installations described in the Schedule attached to this licence and with the powers and upon the terms and conditions specified here in. The terms and conditions of this licence are the sum total of the terms and conditions specified in this licence and those specified in the Biahr Electricity Regulatory Commission (Granting of Licnece for Transmission of Electricity) Regulations 2006

1 · 2 The licence is not transferable

1 · 3 The grant of licence to the licensee shall not in any manner restrict the right of the Commission to grant a licence to any other person within the same area for the transmission system other than the project described in the schedule attracted to this licence. The licensee shall not claim any exclusivity.

1 · 4 The licence shall, unless revoked earlier, continue to be in force for a period of 25 (twenty five) years from the date of issue.

2 · 1 Unless the context otherwise requires in these conditions:-

2 · 2 Words, terms and expressions to which meanings are assigned by Act shall have the same meaning in these Conditions

3 · Terms of the Licence

3 · 1 The Transmission Licence shall come into force on the date mentioned by the Commission in the order granting licence on specified terms and conditions and shall remain in force for a period of twenty five years.

3 · 2 The terms and conditions specified in licence are subject to modifications or amendments to be made by the Commission in accordance with the provisions of the Act or this Licence.

4 · Compliance with Laws, Rules and Regulations

5 · Directions

6 · Activities from which the transmission licensee is prohibited

7 · Activities requiring prior consent

8 · Activities of the Licensee.

8 · 1 The Licensee shall perform his duties stipulated in Section 40 of the Act and fulfill the terms and conditions stipulated in the licence.

8 · 2 The Licensee shall build, maintain and operate an efficient coordinated transmission system.

8 · 3 The licensee shall operate the transmission system economically so that the transmission charges can be kept minimum and thereby the component of transmission cost in the tariff is also kept minimum.

8 · 4 The Licensee shall operate the transmission system in such a manner that the parameters are maintained in the ranges prescribed in the Central Electricity Authority's Grid Standards all the time and ensure that the system is available at all times for generators to inject power (of agreed quantum) and for distribution licensees to draw power (of agreed quantum).

8 · 5 The licensee shall coordinate with Regional Power Committee, Regional and State Load Despatch Centres, Central Transmission Utility, State Transmission Utility, generating companies and licensees to ensure uninterrupted supply to the consumers.

8 · 6 The licensee shall obtain prior written approval from the Commission before entering into any agreement with another company for supply of power to consumers in his area.

8 · 7 The licensee shall maintain up to date records of energy transmitted by each element of the system and produce the same to the Commission whenever required.

8 · 8 The licensee shall establish adequate communication and information system facilities before commencing transmission.

8 · 9 The licensee shall act in a prudent and reasonable manner in utilization of the licence for obtaining credit facilities.

8 · 10 The licensee shall under all circumstances retain operational control over his assets in the case of mortgage of his assets.

8 · 11 The Licensee shall seek approval of the Commission before advancing loans, or issuing any guarantee for any obligation of any person except when made or issued for the purposes of the Licensed Business, however loans to employees pursuant to their terms of service and advances to suppliers in the ordinary course of business are excluded from the requirement to seek such approval.

8 · 12 The Licensee may engage any affiliate to provide any goods or services to the licensee, in connection with its transmission business, subject to the following conditions.

9 · Other Business

9 · 1 The licensee shall carryout Other Business for optimum utilization of its assets with prior intimation to the Commission.

9 · 2 The licensee shall carry out the Other Business in a way that the main transmission business is not prejudiced or adversely affected by the Other Business.

9 · 3 The transmission assets shall not be encumbered to support the Other Business.

9 · 4 The licensee shall not give any subsidies to support Other Business.

9 · 5 A proportion of the revenues derived from such Other Business shall be utilized for reducing the transmission charges.

9 · 6 The licensee shall not enter into any contract or otherwise engage in the business of trading of electricity.

9 · 7 Separate accounts shall be maintained for the main transmission business and each of Other Businesses such that of revenues, expenses, assets and liabilities pertaining to each of the Other Businesses can be identified and distinguished from those of the licensed business (transmission).

10 · Accounts

10 · 1 a). The financial year of the licensee shall run from the first of April to the following 31 st of March.

10 · 2 The licensee shall cooperate with, and assist any officer deputed by the Commission to verify the licensee's accounts.

10 · 3 The licensee shall publicise accounts statements and auditors' report for each financial year in the manner the Commission directs and make them available at a price equal to the cost of duplication.

11 · Prohibition of Undue Reference

11 · 1 The licensee shall not show undue preference to any person.

11 · 2 The licensee shall furnish to the Commission without undue delay such information, documents and details related to the licensed business or any Other Business of the Licensee as the Commission may require for its own purpose or for the purpose of the Government of India, State Government, Central Commission and Central Electricity Authority.

12 · Major Incidents

12 · 1 The licensee shall notify to the Commission any major incident that has occurred in the area of the transmission licensee. A deviation from any part of the transmission system from standard operating condition which was triggered by cross boundary effect, in the system of generators, distribution system or in the system of extra high voltage consumers which has resulted in the loss of equipment or life of a person or animal, shall be deemed a major incident. The licensee shall also.

12 · 2 The decision of the Commission whether a particular incident is a major incident or not would be final.

12 · 3 On an incident brought to its notice, the Commission may direct the licensee to submit a report. In such a case the licensee shall submit a detailed report and also suggest remedial measures to be taken, to the Commission.

12 · 4 The Commission may direct an independent person to investigate in the case of a major incident and submit his report.

12 · 5 The Commission may analyse the report and the information received from all sources and will decide whether a major incident is a Force Majeure event or is caused by violation of conditions of licence or provisions of Grid Code or provisions of the Act or the rules and regulations under the Act.

12 · 6 The Commission may decide the following:-

12 · 7 The Commission shall send its views and decisions on the major incident to the State Load Despatch Centre, Chief Electrical Inspector, State Transmission Utility etc.

13 · Investments

13 · 1 The Licensee shall not make any investment under any scheme or schemes except in an economical and efficient manner and in terms of this Licence and in accordance with the Regulations, guidelines, directions and orders, the Commission which may issue from time to time.

13 · 2 The Licensee shall promptly notify the Commission, schemes in relation to the Transmission System which the Licensee from time to time proposes to implement together with relevant details, including the estimated cost of such schemes, with requisite break-up and proposed investment plans. The Licensee shall furnish to the Commission such further details and clarification as to the schemes proposed as Commission may require from time to time. The schemes proposed may be implemented by Licensee subject to the following conditions.

13 · 3 The Licensee shall make an application for obtaining prior approval of the Commission for schemes involving major investments as per the procedure which the Commission may specify from time to time and demonstrate to the satisfaction of the Commission that,

13 · 4 The Licensee shall submit to the Commission along with the "Expected Revenue Calculation", the annual investment plan for ensuing financial year and shall make investment in the said financial year in accordance with the said investment plan. In case of unforeseen contingencies, reallocation of funds within the schemes listed in the annual investment plan, the Licensee may do so provided such reallocation in respect of individual projects does not exceed Rs. 500 lakhs, and Commission has been duly informed. If on account of unforeseen circumstances the Licensee is required to make investment in a scheme which does not find a place in the annual investment plan, the Licensee may do so upto the limit of Rs. 500 lakhs after intimating the Commission.

14 · Transfer of Assets

14 · 1 The Licensee shall not, in a single transaction or a set of related transactions, transfer or relinquish Operational Control over any land, building, or other asset whose book value at the time of the proposed Transfer exceeds Rs. 500 lakhs, without complying with the following:

14 · 2 The Licensee shall give to the Commission prior written notice of its intention to transfer or relinquish Operational Control over any asset whose value exceeds Rs. 500 Lakhs and disclose all relevant facts. The Commission may, within 30 days of the receipt of the notice seek further information in support of the transaction and shall, generally within 30 days of such further information being submitted by the Licensee, and where no such further information is sought by the Commission as above, within 60 days of the filing of the application, allow the transfer arrangement subject to such terms and conditions on modifications as considered appropriate or reject the same for reasons recorded in writing in the order.

14 · 3 The Licensee may transfer or relinquish Operational Control over any asset as is specified in any notice given under above condition 14.2 if

14 · 4 The Licensee may transfer or relinquish Operational Control over any asset where

14 · 5 Notwithstanding what is stated above the Licensee will be entitled to utilise the assets as a means of facilitating funding or financing the Licensed Business in the ordinary course of business, subject to the conditions.

15 · Rights of the Licensee

16 · Payment of Licence Fee

16 · 1 Within such period as the Commission may direct, after coming into force of this licence, the Transmission Licensee shall pay to the Commission an initial fee as specified by the Commission on a prorata basis for the balance period of the financial year or and in such manner as directed by the Commission.

16 · 2 As long as licence remains in force, the licensee shall be liable to pay to the Commission an annual fee as specified by the later on or before 15 th April of every year. The Commission may review the quantum of annual licence fee after every three years.

16 · 3 Where the licensee fails to pay to the Commission any of the fees due under conditions 16.1 or 16.2 by the due dates:

16 · 4 The licensee shall be entitled to take into account any fee paid by it under condition 16 in the determination of aggregate revenue made in accordance with condition 23 but shall not take into account any interest paid pursuant to the condition 16.3

17 · Revocation of Licence

18 · Amendment of Licence Conditions

19 · Transmission Planning and Security Standards;

19 · 1 The Licensee shall plan and operate the Transmission System so as to ensure that the Transmission System is capable of providing an efficient, coordinated and economical system of Transmission. In particular, the Licensee shall:

19 · 2 The licensee shall make arrangements, within twelve months from the date of issue of Licence, to comply with the Power Supply Planning and Security Standards and Power Supply Operating Standards.

19 · 3 The Licensee shall, within 60 days from the date when Licence becomes effective; submit to the Commission the existing

19 · 4 a) The Licensee shall, within six months, or such longer time as the Commission may allow, after Licence has become effective, prepare, in consultation with the Suppliers, Generating Companies, Central Transmission utility, Regional Electricity Boards and such other Person as the Commission may specify, and submit to the Commission for approval the Licensee's proposal for Transmission Planning and Security Standards. Transmission

19 · 5 The Licensee shall not be in breach of its obligations under the Licence if it has failed to meet the Transmission Planning and Security Standards or the Transmission Operating Standards directly due to Force Majeure, provided, the Licensee has used its reasonable efforts, to the extent reasonably possible, to comply with the Transmission Planning and Security Standards or the Transmission Operating Standards as the case may be .

19 · 6 The Licensee shall make reasonable arrangements to provide for sale to Suppliers, sufficient electricity to meet Power Supply Planning and Security Standards and Power Supply Operating Standards approved by the Commission.

19 · 7 The Licensee shall, in consultation with Suppliers, the Generating Companies, Distribution Licensees in the state, the Central Transmission Utility, the regional Electricity Board and such other persons as the Commission may order, review Standards and their implementation on each occasion. Following such review, the Licensee shall send to the Commission.

19 · 8 Having regard to any written representations or objections referred to in condition19. 7(c), and following such further consultation (if any) as the Commission may consider appropriate, it may issue directions requiring the Licensee to revise the standards in such manner as may be specified in the directions.

19 · 9 The Commission may issue directions requiring the licensee to revise any of the standards in such manner as may be specified by the Commission.

19 · 10 The Licensee shall, on an annual basis:

19 · 11 The Licensee shall within 3 months of the end of each financial year, submit to the Commission a report indicating the performance of the Transmission System during the previous financial year. The Licensee shall, if required by the Commission, publish a summary of the report in a manner to be determined by the Commission.

20 · Compliance with Grid Code by the Transmission Licensee

20 · 1 The transmission license shall ensure due compliance with the Indian Electricity Grid Code and Bihar State Electricity Grid Code.

20 · 2 The Commission may, on reasonable grounds and after consultation with the affected Generation Company, Transmission Licensee the State Transmission Utility the State Load Despatch Centre and electricity traders, issue direction relieving the licensee of its obligation in respect of such parts of the State Grid Code and to such extent as may be decided by the Commission.

21 · Central Scheduling and Despatch

21 · 1 Having regard to information provided to it by Suppliers. Generating Companies Central Transmission Utility, Distribution Licensees and other utilities in the region (including information as to forecast levels of electricity demand and availability of generation capacity) and keeping into consideration requirements of the Transmission Planning and Security Standards and the Transmission operating Standards referred to in this Licence, the Licensee shall undertake operational planning matching to possible output of all Generating Sets contracted to it and any other Bulk Supply and other sources or electrical energy connected to the Licensee's Transmission System (including a reserve of generation to provide a security margin or generation availability) with forecast demand after taking into account, inter alia:

21 · 2 Taking account of the factors referred to in condition 21.2 the Licensee shall schedule and issue direct instructions for despatch of power from the Generating Sets and other sources of power as are at such times available to generate electricity and which are subject to despatch instructions.

21 · 3 The factors referred to in condition 21.2 include:

21 · 4 The Licensee shall provide to the Commission such information as the Commission shall require concerning the merit order despatch described in condition 21.2 (a) or any aspect of its operation.

22 · Requirement to Offer Terms for Use of System and Connection to System

22 · 1 The licensee shall make such arrangements for use of the Transmission System by third parties as are specified in the condition 22. On application made by any such third party, the Licensee shall offer to enter into an agreement with that person for the use of the Transmission System.

22 · 2 On application made by a Supplier for grant of a connection to a Consumer wishing to be connected directly to the Transmission System, the Licensee shall offer to enter into an agreement with such Supplier and / or Consumer, as the case may be, for connection to the Transmission System or for modification of such an existing connection and such offer shall make provision for

22 · 3 The Licensee shall offer terms for agreements in accordance with condition 22.1 or 22.2 as soon as practicable but (save where the Commission consents to a longer period) no more than two months after an application under condition 22.1 or 22.2 is made.

22 · 4 The Licensee shall not be obliged pursuant to condition 22 to offer to enter or to enter into any agreement if it is.

22 · 5 If, after a period, which appears to the Commission to be reasonable for the purpose, the Licensee has failed to enter into an agreement with any applicant referred to in condition 22.1 and 22.2 pursuant to a request under condition 22, the Commission may at the request of a party settle such terms in dispute between the Licensee and that Person and, the Licensee shall forth with enter into and implement such agreement in accordance with its terms as settled by the Commission.

22 · 6 The Licensee shall prepare and submit to the Commission on annual basis, a settlement showing in respect of each of the 5 succeeding financial years, forecasts of circuits capacity, power flows and loading on the Transmission System under standard planning criteria, together with:

22 · 7 At the request of a person or a supplier who wishes to use the Transmission System under condition 22.1 or 22.2 the Licensee shall prepare an update to the above statement, incorporating most recent data but specifically including any facility for which any other Person or a Supplier has requested use of and connection to the Transmission System.

22 · 8 The Licensee may make a charge for any statement given or sent to Persons seeking Use of System, of an amount reflecting the Licensee's reasonable costs of providing such a statement.

23 · Expected Revenue and Tariff Filings

23 · 1 The Licensee shall follow the methodology, procedures and other directions included in the Tariff Regulations while filing statements of expected revenue from charges and for proposing or amending any or all of its tariffs.

23 · 2 The amount that the licensee is permitted to recover from its tariffs in any financial year is the amount that the Commission determines in accordance with the financial principles and their applications provided in Section 62 of the Electricity Act 2003, as will allow the licensee a fair opportunity to earn a reasonable return.

23 · 3 The Licensee shall establish a tariff as approved by the Commission, for the Licensee's Transmission Business and shall calculate its charges in accordance with this License, the Regulations, the orders of the Commission and other requirements prescribed by the Commission from time to time.

23 · 4 The Licensee may publish a tariff for its Transmission of electricity reflecting the tariff charges and the other terms and conditions contained in the approved tariffs referred to in condition 23.2 above or as directed by the Commission.

23 · 5 The Licensee may apply to the Commission to amend its tariffs in accordance with the Act and applicable Regulations and directions of the Commission.

23 · 6 The Licensee may apply to the Commission to amend its tariffs in accordance with the Act if the Commission so requires in order to remove any undue discrimination identified by the Commission or to cause the licensee's expected revenue to correspond to the amount that it is permitted to recover under this Licence.

24 · Miscellaneous Matters

24 · 1 All issues arising in relation to interpretation of these General Conditions shall be a matter for the determination of the Commission and the decision of the Commission on such issues shall be final, subject only to the right of appeal under Section 111 of the Act.

24 · 2 The Commission may at the time of grant of Transmission Licence waive or modify the application of any of the provisions of these General Conditions either in the order granting the licence or by Specific Conditions made applicable to a Transmission Licence.