The Appropriate Commission may, on an application made to it under section 15, grant a licence to any person—
(a) to transmit electricity as a transmission licensee; or
(b) to distribute electricity as a distribution licensee; or
(c) to undertake trading in electricity as an electricity trader,
in any area as may be specified in the licence:
Provided that any person engaged in the business of transmission or supply of electricity under the provisions of the repealed laws or any Act specified in the Schedule on or before the appointed date shall be deemed to be a licensee under this Act.
Legal Commentary & Landmark Judgments: Section 14
Section 14 of the Electricity Act, 2003 governs the grant of licences for transmission, distribution, and trading, establishes the framework for parallel distribution licensing, and confers deemed licensee status upon specified governmental entities, SEZ developers, and railways.
When applying for a parallel distribution licence under the sixth proviso to Section 14, meticulously document full compliance with the Central Government's capital adequacy rules and establish an independent distribution network plan, preempting incumbent licensee objections asserting predatory cherry-picking.