Intra State Trading Licence

Intra State Trading Licence

Appellant had objected to the issuance of Intra-StateTrading Licence on various grounds. After considering the materials placed before it, the State Commission found that Respondent No.1 is competent to make a claim for licence and notified Appellant of its decision. Appellant was allowed to contest the decision but was unable to convince the State Commission of her arguments.

Regulations

The Central Electricity Regulatory Commission (CERC) has approved ReNew Energy Markets as a Category IV trading license. The company applied for the license after filing a petition with the commission. After receiving no objections, the CERC published a public notice in accordance with the Trading License Regulation on September 3, 2021.

The Commission decided to grant the Intra-State Trading Licence to Respondent No.1. Oricon Equipments (P) Ltd., as the Appellant, objected to the award of its licence on various grounds. The State Commission, however, rejected the Appellant's objections and affirmed Respondent No.1's eligibility to claim the licence.

The Commission also concluded that it was not possible to maintain the Himachal Pradesh case before it. The complaint was based on a particular intra-State trading licensee, a specific intra-State transaction, and the 2010 Regulations for intra-state trading.

Functions

Intra state trading takes place within a single state and may involve multiple entities. A private corporation may be a state trading enterprise if it receives special privileges granted by the state. These privileges give the enterprise an advantage over rival private companies in the area. These privileges can affect the level and direction of trade but do not necessarily create a monopoly.

The rules governing STEs aim to ensure that they operate on a commercial and non-discriminatory basis. They also aim to prevent the implementation of quantitative restrictions and subsidies. Furthermore, STEs must be fully notified to the WTO on a regular basis. One of the most important rules is the transparency obligation. There are some concerns that this transparency obligation may not be upheld in the future.

The Working Party on State Trading Enterprises has developed an illustrative list of STEs. This list highlights the types of STEs and their relationships with governments. It provides a starting point for Members in deciding whether a certain entity is notifiable and contributes to improved transparency in STEs. Most State trading enterprises are statutory marketing boards, which combine a monopoly on foreign trade with responsibility for managing domestic production.