- (1.) THIS Regulatory Compliance Application has been made by the Essar Electric Power Development Corporation Limited (EEPDCL) for upgradation of its inter -State trading licence in electricity from Category III to Category II.
(2.) BY order dated 14.5.2010, Essar Electric Power Development Corporation Limited was granted Category "C" licence under Central Electricity Regulatory Commission (Procedure, Terms and Conditions of Trading Licence and other related matters) Regulations, 2004 for undertaking inter -State trading in electricity in whole of India except the State of Jammu and Kashmir up to 500 MUs in a year. Consequent to the notification of the Central Electricity Regulatory Commission (Procedure, Terms and Conditions of Trading Licence and other related matters) Regulations, 2009 as amended from time to time (Trading Licence Regulations), the licence granted to the petitioner stands re -categorised as Category "III'.
(3.) THE licensee has filed an application for up -gradation of its licence from Category III to Category II in accordance with Trading Licence Regulations. Third and Fourth provisos to Regulation 7(b) of the Trading Licence Regulations provide as under: "Provided also that a licensee may make an appropriate Application accompanied by prescribed fees for upgradation of its licence to a higher category or down gradation of its licence to a lower category if it fulfills the conditions of these regulations for grant of such licence but it shall not be required to follow the procedure specified in Regulation 6 of these regulations. Provided further that the licensee shall be heard by the Commission before taking a decision on the application." The technical requirements for all categories of licence are the same. The petitioner, who holds a Category III licence, therefore, fulfills the technical requirements of Category II licence also. As regards the net worth, Regulation 3(3) of the Trading Licence Regulations provides that a person applying for Category II trading licence should have net worth of Rs. 15 crore and should have maintained minimum current ratio and liquidity ratio of 1:1 on the date of audited special balance sheet accompanying the application.;