The Commission may relax the minimum liquidity ratio requirement for a trading licence if the applicant demonstrates substantial financial strength through a net worth significantly higher than the minimum requirement, subject to maintaining additional net worth as per regulations.

ORDER

The Petitioner, Carbon Resources Private Limited (hereinafter referred to as “the Applicant”), is a Private Limited Company incorporated under the Companies Act, 1956 on 4.9.1991, has made the present Application under Section 14 read with Section 15 of the Electricity Act, 2003 (hereinafter referred to as “the Act”) read with Regulation 6 of the Central Electricity Regulatory Commission (Procedure, Terms and Conditions for the Grant of Trading Licence and other related matters) Regulations, 2020 (hereinafter referred to as “the Trading Licence Regulations”), amended from time to time, for the grant of a Category ‘III’ trading licence for inter-State trading in electricity across India.

Hearing dated 6.5.2026

The learned counsel for the Petitioner submitted that the present Petition has been filed for the grant of a Category ‘III’ inter-State Trading Licence and the Petitioner has already complied with all the requirements specified in the Trading Licence Regulations, 2020, including the issuance of notice in the Newspapers inviting suggestions/objections on the present application.

Vide Record of Proceedings for the hearing dated 6.5.2026, the Petitioner was directed to submit the information and clarification regarding

(i) Special Audited Balance Sheet, duly supported by an Auditor’s certificate/ report, along with the income statement, schedules, and notes to accounts forming an integral part thereof, prepared in accordance with the Companies Act, 2013 and in compliance with Clause 3(b) of the Trading Licence Regulations, 2020, as on a date within 30 days preceding the date of the application, and to demonstrate compliance with net worth and the current and liquidity ratios for grant of a Category III Trading Licence, including complete particulars of loans, advances, and investments in associates and the related parties, and

(ii) Clarify that the professionals, whose profiles have been submitted by the Petitioner, are engaged on a full-time basis, in compliance with Regulation 3(2) of the Trading Licence Regulations, 2020.

The Petitioner has filed a compliance affidavit dated 30.5.2026, furnishing the audited Special Balance Sheet as on 28.2.2026, and has confirmed that the professionals whose profiles were submitted are engaged on a full-time basis.

Hearing dated 29.6.2026

During the hearing, the learned counsel for the Petitioner submitted that the Petitioner has filed the information called for and prayed for the grant of a trading licence to the Petitioner. After hearing the learned counsel for the Petitioner, the matter was reserved.

Analysis and Decision

We have perused the documents available on record. Regulation 6 of the Trading Licence Regulations provides for the procedure for the grant of a trading licence as under:

“6. Procedure for grant of licence -

(1) Any person desirous of undertaking inter State trading in electricity shall make an application to the Commission for grant of licence in the manner -specified in Form I appended to these regulations and such application shall -be accompanied by

(a) Such application fee as prescribed by the Central Government from time to time and shall be paid as per the procedure specified in Central Electricity Regulatory Commission (Payment of Fees) -Regulations, 2012, as amended from time to time or any statutory re enactment thereof.

(b) Copies of the annual reports in case of the persons incorporated under the Companies Act, 1956 or Companies Act, 2013 including audited accounts along with the Directors' Report, Auditors' Report, the Schedules and notes to accounts for one Year immediately preceding the Year in which the application has been made and the audited special balance sheet as on any date falling within 30 days immediately preceding the date of filing the application.

(2) The Applicant shall post complete application along with annexures and enclosures on its website so as to facilitate access to the application by any person throug