Section 15: Procedure for grant of licence

Electricity Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2003

Legal Commentary & Landmark Judgments: Section 15

Section 15 of the Electricity Act, 2003 prescribes the mandatory quasi-judicial procedure for the grant of licences, including application submission, mandatory newspaper publication, invitation of public objections, local authority consultations, and a strict 90-day timeline for Commission determination.

  • Prescribed Application and Public Notice Mandate: Requires applicants to file formal applications in prescribed formats and publish public notices in daily newspapers inviting objections or suggestions within 30 days.
  • Mandatory Consideration of Public Objections and Recommendations: Obligates the Appropriate Commission to examine all filed objections, evaluate recommendations of the Central Transmission Utility (CTU) or State Transmission Utility (STU), and conduct public hearings.
  • Mandatory Ninety-Day Disposal Timeline and Reasoned Orders: Directs the Commission to either grant the licence or reject the application via a reasoned, speaking order within ninety days from the date of receipt of the application, publishing the granted licence in the Official Gazette.
Key Landmark Precedents:
  • Transmission Corporation of Andhra Pradesh v. CERC (2008) APTEL ELR 56: APTEL held that the 90-day timeline under Section 15(6) underscores the legislative urgency in modernizing grid operations, and failure to issue a reasoned order within this window constitutes regulatory delay subject to appellate mandamus.
  • BSES Yamuna Power Ltd. v. CERC (2011) APTEL ELR 189: APTEL affirmed that the public consultation mechanism under Section 15(2) is mandatory and non-waivable; granting a transmission or trading licence without publishing notices violates natural justice.
Courtroom Practice & Strategic Litigation Guidance:

In licensing petitions, ensure contemporaneous compliance by publishing notices across dominant regional vernacular and English dailies immediately upon filing, and address CTU/STU technical feasibility reports proactively before the Commission conducts the final Section 15 public hearing.