CERC Issues Interstate Trading License To VEH Global India


Vibrant Energy Holdings Global India (VEH Global India) has been given a trading license by the Central Power Regulatory Commission (CERC) for intrastate electricity trading in India.


In order to get the trade license, VEH Global India has earlier submitted a petition. In its petition, VEH Global India claimed that no objections had been raised in response to the public notice that the company had released. 


According to the Commission, it was satisfied that the business complied with the conditions set out in the Trading License Regulations for the issuance of an interstate trading license in Category IV. 


Under Section 15 of the Electricity Act of 2003, the central regulator instructed the developer to transmit a copy of the order to the Central Government.


A Category IV trading license applicant must meet the requirements of the Trading License Regulations, which state that they must have a net worth of Rs. 100 million or more. 

Moreover, as of the date of the audited balance sheet attached to the application, it was required to have maintained a minimum current ratio and liquidity ratio of 1:1.

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According to the developer’s special balance statement, it has the necessary net worth, current ratio, and liquidity ratio to be granted a Category IV trading license. And, thereby, the Commission determined in a recent ruling that the developer met the requirements for the license.

The developer stated that, if granted, it would adhere to the conditions outlined in the Trading License Regulations for the duration of the trading license.

The Commission declared some requirements that must be met in order for the trading license to be granted, which include that the licensee must abide by the rules set out in the Trading License Regulations and the Electricity Act, and during the time that the trading license is valid, the licensee must refrain from conducting the business of electricity transmission.

Further, according to the terms of the CERC (Payment of Fees) Regulations, 2012, the licensee must routinely pay the yearly licensing fee, along with adhering to the trading margin charges by Trading License Regulations, as they are revised on a timely basis.

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Additionally, CERC specified that, as per the rules of the Electricity Act and the Trading License Regulations, the license would be subject to termination if the licensee failed to engage in electricity trading within a year of the license’s issuance.

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