(1) The state Government may,on application made in the prescribed form and on payment of the prescribed fee(if any) 1 [grant after consulting the State Electricity Board, a license to anyperson] to supply energy in any specifiedarea, and also to lay down or place electric supply-lines for the conveyanceand transmission of energy,-
(a)where the energy to be supplied is to be generated outside such area, from a generatingstation situated outside such area to the boundary of such area, or
(b)where energy is to be conveyed or transmitted from any place in such area toany other place therein, across an intervening area not included therein,across such area.
(2) In respect of every suchlicense and the grant thereof the following provisions shall have effect,namely:-
(a)any person applying for a license under this Part shall publish a notice of his application in theprescribed manner and with the prescribed particulars, and the license shallnot be granted-
(i)until all objections received by the State Government with referencethereto have been considered by it:
Providedthat no objection shall he so considered unless it is received before theexpiration of three months from the date of the first publication of suchnotice as aforesaid; and
(ii)until, in the case of an application for a license for an areaincluding the whole or any part ofany cantonment 2 [aerodrome,] fortress, arsenal,dockyard or camp or of any building or placein the occupation of the Government for [defencepurposes], the State Government hasascertained that there is no objection to the grant of the license on the partof me [CentralGovernment];
(b)where an objection is received from any local authority concerned, theState Government shall, if in its opinion the objection is insufficient, recordin writing and communicate to such local authority its reasons for suchopinion;
(c)no application for a license under this Part shall be made by any localauthority except in pursuance of a resolution passed at a meeting of such authority heldafter one month's previous notice of the same and of the purpose thereof hasbeen given in the manner in which notices of meetings of such local authority are usually given;
(d)a license under this part-
(i)may prescribe such terms as to the limits within which, and theconditions under which, the supply of energy is to be compulsory or permissive,3 [***]and generally as to such matters as the state Government may think fit; and
(ii)save in cases in which under section 10, clause (b). the provisions of 4 [sections 5and 6], or cither of them, havebeen declared not to apply, every such licensee shall declare whether anygenerating station to be used in connection with the undertaking shall or shallnot form part of the undertaking for the purpose of purchase under 5 [section 5 or section 6];
(e)the grant of a license under this Part for any purpose shall not in any way hinder or restrict the grantof license to another person within the same area of supply for a like purpose;
(f)the provisions contained in the Schedule shall be deemed to beincorporated with and to form part of, every license granted under this Part,save in so far as they are expressly added to, varied or excepted by thelicense, and shall, subject to any such additions, variations or exceptionswhich the State Government is hereby empowered to make, apply to theundertaking authorised by the license:
Providedthat where a license is granted in accordance with the provisions of clause IXof the Schedulefor the supply of energy to other licensees for distribution by them, then, inso far as suchlicense relates to such supply, the provisions of clauses IV, V, VI, VII, VIIIand XII of the Schedule shall not he deemed to be incorporated with thelicense.
6 [***]
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1. Substituted by Act 32 of 1959, Section 4, for "grant to anyperson a license".
2. Inserted bymm9, section 4, for "Engineer-in-Chief, Army Headquarters,India".
3. The words "and as to the limits if price to be charged in respectof the supply of energy" omitted by Act 32 of 1959, Section 4.
4. Substituted by Act 32 of 1959, Section 4, "section 5 and 7".
5. Substituted by Act 32 of 1959, Section4, for "section 5 orsection 7".
6. Sub-section (3) omitted by Act 38 of 1920, Section2,Sch. I, Pt. 1.