Section 18: Grant of licenses by the Commission.

(1) The Commission may, on application made in the prescribed form and on payment of the prescribed fee, grant a licence to any person to, - (a) transmit electricity in a specified areas of transmission: or (b) distribute and supply electricity in a specified area of supply including bulk supply to licensees or any person. (2) In respect of every such licence and the grant thereof the following provisions shall have effect, namely: - (a) any person applying for a licence under this Part shall publish a notice of his application in the prescribed manner and with the prescribed particulars, and the licence shall not be granted, - (i) until all objections received by the Commission with reference thereto have been considered by it: Provided that no objection shall be so considered unless it is received before the expiration of one month from the date of the first publication of such notice as aforesaid: and (ii) until, in the case of an application for a licence for an area including the whole or any part of any cantonment, aerodrome, fortress, arsenal, or camp or of any building or place in the occupation of the Central Government for defense purposes, the Commission has ascertained that there is no objection to the grant of the licence on the part of the Central Government: (b) where an objection is received from any local authority concerned, the Commission shall, if in its opinion the objection is insufficient, record in writing and communicate to such local authority its reasons for such opinion: (c) no application for a licence under this Part shall be made by any local authority except in pursuance of a resolution passed at a meeting of such authority held after notice of the same and of the purpose thereof has been given in the manner in which notices of meetings of such local authority are usually given: (d) a licence under this Part, - (i) may prescribe such terms as to the limits within which, and the conditions under which, the supply of energy is to be compulsory or permissible, and generally as to such matters as the Commission may think fit: and (ii) save in cases in which under section 10, clause (b) of Indian Electricity Act, 1910 (Central Act No. 9 of 1910), the provisions of section 5 and 6, or either of them, have been declared not to apply, every such licence shall declare whether any generating station to be used in connection with the undertaking shall or shall not form part of the undertaking for the purpose of purchase under section 5 or 6 of Indian Electricity Act, 1910 (Central Act No. 9 of 1910); (e) the grant of a licence under this part for any purpose shall not in any way hinder or restrict the grant of a licence to another person within the same area for a like purpose; (f) the provisions contained in the Schedule to the Indian Electricity Act. 1910 (Central Act No. 9 of 1910) shall be deemed to be incorporated with, and to form part of, every licence granted under this Part, save in so far as they are expressly added to, varied or excepted by the licence, and shall, subject to any such additions, variations or exceptions which the State Government is hereby empowered to make, apply to the undertaking authorised by the licence: Provided that where a licence is granted in accordance with the provisions of Clause IX of the Schedule for the supply of energy to other licensees for distribution by them, then so for as such licence relates to such supply, the provisions of clause IV, V, VI, VII, VIII and XII of the Schedule shall not be deemed to be incorporated with the licence.