SJVN gets Category I licence for inter-state trading of electricity across India from CERC

• The inter-state electricity trading licence will allow SJVN to undertake purchase of electricity from a seller in a state and resell such electricity to a buyer in the same state
• While granting the licence, the CERC said that SJVN will not engage in the business of electricity transmission during the period of subsistence of the trading licence

New Delhi: The Central Electricity Regulatory Commission (CERC) has granted Category I licence for inter-state trading of electricity across India to SJVN Ltd. In an order dated January 10, the CERC said, "On consideration of the materials on record, we are satisfied that the Applicant company (SJVN) meets the requirements of the Act and the Trading Licence Regulations for Order in Petition No. 165/TD/2021 Page 4 grant of inter-State trading licence for Category 'I'. Accordingly, we direct that SJVNL be issued a Category 'I' licence for inter-State trading in electricity in whole of India."

According to the CERC order, no objections were received on the petition filed by SJVN for the grant of the licence for inter-state trading in electricity. 

Inter-state electricity trading: How does SJVN benefit from licence? 

A licence issued by the CERC under Section 14 of The Electricity Rules, 2005, to an electricity trader for inter-state operations entitles the electricity trader to undertake purchase of electricity from a seller in a state and resell such electricity to a buyer in the same state, without the need to take a separate licence for intra-state trading from the State Commission of the state.

SJVN will have to commence trading within a year

"If the licensee fails to undertake trading in electricity within one year from the date of licence, the licence will be liable for revocation in accordance with the provisions of the Act and Trading Licence Regulations," the CERC order stated. The CERC has also said that SJVN will not engage in the business of electricity transmission during the period of subsistence of the trading licence.

SJVN has a portfolio of more than 16,000 MW, out of which 2,016.5 MW is under operation and the rest is under various stages of development. SJVN has footprints in nine states of India and in two neighbouring countries — Nepal and Bhutan. 

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