The Ministry of Power on 28th November 2022, has published the Distribution of Electricity Licence (Additional Requirements of Capital Adequacy, Creditworthiness and Code of Conduct) (Second Amendment) Rules, 2022 to further amend the Distribution of Electricity Licence (Additional Requirements of Capital Adequacy, Creditworthiness and Code of Conduct) Rules, 2005.
The amendment is brought under rule 3 which deals with requirement of capital adequacy and creditworthiness in which the explanation has been substituted as follows:
For the purposes of this sub-rule, it is hereby clarified that for the grant of a license for distribution of electricity within the same area in terms of sixth proviso to section 14 of the Act, the entire area covering either a Municipal Corporation as defined in article 243Q of the Constitution or three adjoining revenue districts, or a smaller area as may be notified by the Appropriate Government shall be the minimum area of supply.”
