law: Electricity Act, 2003 
  14. Grant of
  
  licence.- 
  
  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  under the provisions of the repealed laws or any Act specified in the Schedule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
  
  for such period as may be stipulated in the licence, clearance or approval
  
  granted to him under the repealed laws or such Act specified in the Schedule, and
  
  the provisions of the repealed laws or such Act specified in the Schedule in
  
  respect of such licence shall apply for a period of one year from the date of
  
  commencement of this Act or such earlier period as may be specified, at the
  
  request of the licensee, by the Appropriate Commission and thereafter the
  
  provisions of this Act shall apply to such business:
  Provided
  
  further that  
  
  the Central Transmission Utility or the State Transmission Utility shall be
  
  deemed to be a transmission licensee under this Act:
  Provided
  
  also that  
  
  in case an Appropriate Government trasmits electricity or distributes
  
  electricity or undertakes trading in electricity, whether before or after the
  
  commencement of this Act, such Government shall be deemed to be a licensee
  
  under this Act, but shall not be required to obtain a licence under this Act:
  Provided
  
  also that  
  
  the Damodar Valley Corporation, established under sub-section (1) of section 3
  
  of the Damodar Valley Corporation Act, 1948, shall be deemed to be a licensee
  
  under this Act but shall not be required to obtain a licence under this Act and
  
  the provisions of the Damodar Valley Corporation Act, 1948, insofar as they are
  
  not inconsistent with the provisions of this Act, shall continue to apply to
  
  that Corporation:
  Provided
  
  also that  
  
  the Government company or the company referred to in subsection (2) of section
  
  131 of this Act and the company or companies created in pursuance of the Acts
  
  specified in the Schedule, shall be deemed to be a licensee under this Act:
  Provided
  
  also that  
  
  the Appropriate Commission may grant a licence to two or more persons for
  
  distribution of electricity through their own distribution system within the
  
  same area, subject to the conditions that the applicant for grant of licence
  
  within the same area shall, without prejudice to the other conditions or
  
  requirements under this Act, comply with the additional requirements (relating
  
  to the capital adequacy, Credit worthiness or code of conduct) as may be
  
  prescribed by the Central Government, and no such applicant, who complies with
  
  all the requirements for grant of licence, shall be refused grant of licence on
  
  the ground that there already exists a licensee in the same area for the same
  
  purpose:
  Provided
  
  also that  
  
  in a case where a distribution licensee proposes to undertake distribution of
  
  electricity for a specified area within his area of supply through another
  
  person, that person shall not be required to obtain any separate licence from
  
  the concerned State Commission and such distribution licensee shall be responsible
  
  for distribution of electricity in his area of supply:
  Provided
  
  also that  
  
  where a person intends to generate and distribute electricity in a rural area
  
  to be notified by the State Government, such person shall not require any
  
  licence for such generation and distribution of electricity, but he shall
  
  comply with the measures which may be specified by the Authority under section
  
  53:
  Provided
  
  also that  
  
  a distribution licensee shall not require a licence to undertake trading in
  
  electricity.