Section 17: Licensing

(1) No person, other than those authorised to do so by licence or by virtue of exemption under this Act or authorised to or exempted by any other authority under the Electricity (Supply) Act, 1948 (Central Act No. 54 of 1948), shall engage in the State in the business of,- (a) transmitting electricity; or (b) distributing and supplying electricity. (2) Where any question arises as to whether any person is engaged or about to engage in the business of transmitting, distributing or supplying electricity as specified in sub-section (1), the matter shall be referred to the Commission and the decision of the Commission shall be final. (3) The Commission shall order any unlicensed person to discontinue transmission, distribution or supply, as the case may be, of electricity. (4) Notwithstanding anything contained in any other provisions of this Act and until the establishment of the Commission in terms of section 3 the State Government shall have power to grant provisional licenses under this section having a duration not exceeding twelve months to any person or persons to engage in the State in the business of transmission, distribution and supply of electricity on such terms and conditions as the State Government may determine consistent with the provisions of this Act, subject to the following conditions, namely: - (a) upon the establishment of the Commission, each of the provisional licenses granted by the State Government shall be placed before the commission and shall be deemed to constitute an application for grant of a licence by the Commission under the provisions of this Act, and (b) each provisional licence granted under this section shall cease to be valid from the date notified by the Commission. (5) The State Government shall be empowered to confer on the provisional licensees to whom licenses have been granted under subsection (4) such powers, rights and authorisation as the Commission is entitled to grant to the licensees under this Act. (6) The Commission shall exercise all powers and functions under the Act in regard to any provisional licence granted under sub- section (4) in the same manner as in the case of a licence under Section 18 of this Act.