Saturday, March 14, 2009


New valuation, licensing Norms set for Cos

CERC has reduced the types of licences from six to three. The category-I license holder will have no
restriction on the volume of electricity to be traded in a year but it will show a higher net worth of Rs. 50 crore. The category –II licensee will have to limit trading of electricity to a maximum of 500 million units in a year and have to have net worth of Rs. 25 crore while category-III licensee will be permitted to trade up to 100 million units of electricity in a year and have a net worth of Rs. 5 crore.
The net worth definition has also been revised to discount loans and advances given to associates. So far, CERC has issued trading licenses to 42 companies, such as Tata Power, Reliance Energy, RPG Power, GMR Energy and DLF Power. The new regulation has also specified that CERC will also regulate electricity imported from other countries.


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