The Appropriate Commission may, on the recommendations of the Appropriate Government, in accordance with the national policy formulated under section 5 and in the public interest, direct, by notification that subject to such conditions and restrictions, if any, and for such period or periods, as may be specified in the notification, the provisions of section 12 shall not apply to any local authority, Panchayat Institution, Users' Association, co-operative societies, non-governmental organisations, or franchisees:
Provided that the Appropriate Government may, from time to time, review such exemption.
Legal Commentary & Landmark Judgments: Section 13
Section 13 of the Electricity Act, 2003 confers discretionary power upon the Appropriate Commission, acting on recommendations of the Appropriate Government, to exempt specific persons or local authorities from the mandatory licensing requirements of Section 12, subject to specified terms and conditions.
In industrial townships, SEZs, or rural developer networks seeking relief from heavy distribution licensing compliances, submit formal representations under Section 13 demonstrated by public interest justification, local consumer consent, and technical safety assurances to obtain structured regulatory exemption.