INDIA Law and Practice Contributed by: Anupam Varma, Poonam Verma Sengupta, Sakshi Kapoor and Rajesh Jha, JSA
distribution asset carries the same legal status as that asset. • Microgrids and distributed resources : Governed by state mini- and micro-grid policies, SERC Grid Codes, net-metering and rooftop-solar regulations, and CEA connectivity standards for distributed generation resources.
lished and objections from the public are invited (Sec- tion 15 of the Electricity Act). Also, in tariff determination proceedings where the licensee submits its petition for determination of tariff along with the capital expenditures under Section 62, the SERC directs the licensee to invite comments on the petition through publication and conduct a public Distribution has a limited environmental footprint and is not ordinarily subjected to a project environmental assessment, a clearance being required only for forest land. SERC grants licence and approves investment itself, rather than merely recommending, while safety approvals rest with the CEA and the State Electrical Inspectorate. If electricity connections are granted to premises that are not approved or are in violation of the environmental clearances, the authorities con- cerned issue directions to the licensees to disconnect the electricity supply to such premises. Timelines The licence is ordinarily granted within a few months if all conditions are satisfied. Different SERCs have their own specified timelines and processes for grant of electricity connections. Where a new substation or augmentation is required, the period is longer. 5.3 Terms and Conditions Imposed in Approvals to Construct and Operate Electric Distribution Facilities There are separate conditions governing the con- struction, operation and maintenance of distribution assets. These conditions bind not only the distribu- tion licensee but also a consumer or developer that builds and operates distribution facilities on its own premises. Construction Conditions hearing under Section 64. Environmental Clearances Construction must conform to the CEA (Technical Standards for Construction of Electrical Plants and Electric Lines) Regulations, 2022 and the technical conditions of the State Grid Code and Supply Code. The person carrying out the execution of the works is required to obtain approval for the drawings through licensed electrical contractors.
5.2 Regulatory Process for Obtaining Approvals to Construct and Operate Electricity Distribution Facilities
Distribution of electricity is regulated by the SERCs. Therefore, the regulatory process and approvals for constructing and operating distribution networks vary
from state to state. Approvals Required
Approvals vary based on the specific requirements under the applicable regulations of the SERC. Gener- ally: • for a licensee, the process typically involves: (a) capital-investment approval before the SERC under its licence conditions and/or tariff regula- tions; (b) municipal and local-authority permissions for street works and right of way under Section 67 of the Electricity Act read with the Works of Licensees Rules, 2006; (c) forest clearance where forest land is passed through; and (d) the Electrical Inspector’s approval; and • for a consumer or developer, the process typically involves: (a) sanction of load and a connection agreement with the licensee (for High Tension/Extra High Tension consumers, the Agreement may have to be approved by the SERC concerned); (b) approval of substation drawings; (c) execution through an approved contractor, testing; and (d) the Electrical Inspector’s approval before the licensee energises the installation. Public Participation Public participation arises at the licensing stage, where the application for grant of a licence is pub-
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