Indore-Based EKI Power Gets Nod For ISTS Power Trading Licence

CERC Grants PXIL Extra Time To Comply With Power Exchange Norms

Indore-based EKI Power Trading Limited today received approval for a licence from the Central Electricity Regulatory Commission (CERC) for commencing transmission of power under the Inter-State Transmission System (ISTS). The decision from the central commission came when the firm moved the CERC seeking its approval for a licence of electricity transmission. 

The company was incorporated under the Companies Act, 2013, on October 20, 2022. This firm is an entity of the group of EKI Energy Services Limited (holds 100% share of the Petitioner). EKI Energy on the other hand is India’s leading carbon credit developer. It supplies carbon credits across the world. The latest grant of power trading licence to EKI has added new dimension to its product offering. 

While granting the licence, the Commission said that it satisfied all conditions for the permission. As per the norms, any person applying for power transmission licence under Category IV should have a net worth of Rs 10 crore and should have maintained a minimum current ration of liquidity ratio of 1:1 as on the date of the audited special balance sheet accompanying the application. 

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As per the audited special balance sheet on September 11, 2023, EKI’s total net worth stood at 1037.48 lakh. While it current ratio stood at 519.74 and liquidity ratio stood at 519.74. 

 “On consideration of the above facts, after a preliminary examination, we find that the Petitioner meets the requirements as specified in the Trading Licence Regulations or the grant of a Category `IV` trading licence. In view thereof, the Commission proposes to grant a Category `IV` trading licence to the Petitioner. We direct that a notice under Clause (a) of Sub-section (5) of Section 15 of the Act be issued inviting further suggestions or objections to the proposal of the Commission,” the CERC order said.

The matter was listed for the hearing on 10.11.2023. During the course of the hearing, the  counsel for the Petitioner submitted that the Petitioner satisfied all the criteria for the grant of a Category ‘IV’ trading licence as stipulated in the Trading Licence Regulations.