1. A private limited company seeks the grant of a Category III trading licence for inter-State trading in electricity under the Electricity Act, 2003. (Para 1 )
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2026 Supreme(Online)(CERC) 496
CENTRAL ELECTRICITY REGULATORY COMMISSION NEW DELHI
Ramesh Babu V, Member, Harish Dudani, Member, Ravinder Singh Dhillon, Member
Petition under Section 15 (1) of the Electricity Act 2003 read with Regulation 6 of the Central Electricity Regulatory Commission (Procedure Terms and Conditions for grant of trading licence and other related matters) Regulations 2020 for the grant of Category - Ill inter-State trading licence under Section 14 of the Electricity Act 2003. Probus Smart Things Private Limited
Petition No. 529/TD/2026
Important Points
The grant of a Category 'III' inter-State trading licence is contingent upon the applicant's strict adherence to procedural requirements regarding public notice and the satisfaction of specific financial benchmarks (net worth and liquidity ratios) and professional staffing qualifications as prescribed by the CERC Trading Licence Regulations, 2020.
Subject
Regulatory - Electricity Trading Licence
Act Referred
Electricity Act, 2003: S.14, S.15(1)
Central Electricity Regulatory Commission (Procedure, Terms and Conditions for grant of trading licence and other related matters) Regulations, 2020: R.3(2), R.3(3), R.6
Companies Act, 2013
Central Electricity Regulatory Commission (Payment of Fees) Regulations, 2012
Central Electricity Regulatory Commission (Procedure, Terms and Conditions for grant of trading licence and other related matters) Regulations, 2020: R.3(2), R.3(3), R.6
Companies Act, 2013
Central Electricity Regulatory Commission (Payment of Fees) Regulations, 2012
Headnote
(A) Trading Licence - Procedure for Grant - Compliance with Regulation 6 - Mandatory requirements include filing the application in Form-I, payment of fees, publication of notices in specified daily newspapers, and uploading the application on the company website to invite public suggestions or objections. (Para 3, 5)
(B) Eligibility Criteria - Category III Licence - Financial and Professional Requirements - An applicant must maintain a minimum net worth of Rs. 20 crore, a current ratio and liquidity ratio of 1:1, and employ at least one full-time professional with expertise in power system operation and commercial aspects of power transfer. (Para 8, 11, 12)
Issues: Whether the Applicant fulfills the statutory and regulatory requirements for the grant of a Category 'III' inter-State trading licence.
(B) Eligibility Criteria - Category III Licence - Financial and Professional Requirements - An applicant must maintain a minimum net worth of Rs. 20 crore, a current ratio and liquidity ratio of 1:1, and employ at least one full-time professional with expertise in power system operation and commercial aspects of power transfer. (Para 8, 11, 12)
Issues: Whether the Applicant fulfills the statutory and regulatory requirements for the grant of a Category 'III' inter-State trading licence.
Legal Category Hierarchy
Advocates:
For the Appellants/Petitioners: Avijeet Lala, Shreya Dubey
For the Respondents:
For the Appellants/Petitioners: Avijeet Lala, Shreya Dubey
For the Respondents:
Table of Contents
2. The applicant submits that it has complied with all statutory requirements, published the mandatory public notices, and fulfilled qualification criteria, warranting the grant of the electricity trading licence. (Para 2 , 5 , 7 )
3. The commission analyzed regulatory compliance, including the requirement for professional qualifications in power sector operations, net worth criteria, and adherence to public notification procedures under the Trading Licence Regulations. (Para 3 , 5 , 8 , 9 , 12 )
4. A company demonstrates eligibility for an electricity trading licence by satisfying statutory requirements regarding net worth, current ratios, professional staffing, and adherence to public notice procedures. (Para 6 , 10 , 13 )
5. The Commission proposes to grant the Category III trading licence and directs the issuance of a notice inviting further public suggestions or objections before final hearing. (Para 13 , 14 )
6. What are the required financial and professional qualifications for a Category III electricity trading licence?
Applicants must maintain a net worth of at least Rs. Twenty crore, a 1:1 current and liquidity ratio, and must employ full-time professionals experienced in power system operations, commercial trading, and financial management. (Para 8 , 12 )
7. What is the mandatory procedure for publishing public notices regarding a trading licence application?
Applicants must publish an application notice in two daily newspapers within seven days of filing, covering all five regions plus Delhi, and allow thirty days for public suggestions or objections. (Para 3 , 5 )
ORDER
The Applicant, Probus Smart Things Private Limited (hereinafter referred to as “the Applicant”), a Private Limited Company incorporated under the Companies Act, 2013, has made the present Application under Section 15(1) 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 grant of trading license 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 6.10.2026
2. During the hearing, the learned counsel for the Applicant submitted that the Petitioner has already complied with all the requirements specified in the Trading Licence Regulations, including the issuance of notice in the Newspapers inviting suggestions/objections on the present application. However, no suggestions/ objections have been received so far. Accordingly, the learned counsel prayed to reserve the matter for orders. After hearing the learned counsel for the Applicant, the matter was reserved for orders.
Analysis and Decision
3. 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 through internet and shall keep them on the website till the disposal of the application.
(3) The Applicant shall within 7 days after making such application, publish a notice of its application, in two daily newspapers in Form II, with the following particulars, namely:
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(4) The Applicant shall within 7 days from the date of publication of the notice as aforesaid submit to the Commission on affidavit the details of the notice published and shall also file the original complete page of the newspaper in which the notice has been published.
(5) The Applicant shall allow a period of 30 days to the public to file objections or suggestions to the notice of application published in the newspapers.
(6) The Applicant shall file its reply before the Commission within 30 days from the last date of receipt of objections or suggestions from the public.
(7) The Commission after consideration of the objections or suggestions received in response to the notice published by the Applicant and its reply may reject the application or may propose to grant licence.
(8) When the Commission proposes to grant licence, it shall publish a notice of its proposal in two daily newspapers, as the Commission may consider appropriate, stating the name and address of the person to whom it proposes to issue the licence and with such other details as the Commission considers appropriate, to invite further o
