RSN 4 Generation of ELectricity.pdf

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Guide to Electricity Laws In India
Based on The Electricity Act,2003
Raj Singh Niranjan
Dr. Gopal Energy Foundation

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PART-B
DEVELOPMENT OF ELECTRICITY MARKET
Chapter – 4
Generation of Electricity
“Dams are the Temple of modern India”
- Pandit Jawahar Lal Nehru

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ABBREVIATIONS/ ACRONYMS
ALMM Approved List of Module Manufacture
CEA Central Electricity Authority
DISCOM Distribution Company
PPA Power Purchase Agreement
PM KUSUM Yojna Pradhan Mantri Kisan Urja Suraksha evam
Utthaan Mahabhiyan
PV Photo Voltaic
TILA Trans India Law Associates
TABLE OF CASES
-
TABLE OF STATUTES
Air (Prevention and Control of Pollution) amended Act, 1987
Approved Models & Manufacturers of Solar Photovoltaic Modules (Requirement for
Compulsory Registration Order, 2019
CEA Technical Standards for Communication system in power systems operations
Regulations, 2020
CEA Technical Standards for Distributed Generating sources Regulations, 2013
CEA Technical Standards for construction of electrical plants and electrical lines Regulations,
2010
Coastal Regulation Zone Notification, 2018
Environment in Impact Notification, 1994
Environment (Protection) Amended Act, 1991
Environment (Protection) Amendment Rules, 2018
Environment Setting of Industrial Project Rules 1999
Forest Conservation Act, 1980 as amended in 1988
General Clauses Act, 1897
Hazardous Waste Handling and Management Rules 1989 amended in 2000
Income Tax Act, 1961
Manufacture Storage and Import of Hazardous Chemical Rules 1989
Noise Pollution (Regulation and Control) (Amendment) Rules, 2010
Public Liability Insurance (Amendment) Act, 1992
The Constitution of India, 1950
The Electricity Act, 2003
The General Clauses Act, 1897
The Income Tax Act, 1961
Water (Prevention and Control of Pollution) Amended Act, 1988
Wildlife (Protection) Amended Act, 1991
GLOSSARY
Multipurpose Projects Multipurpose project involves many activities
including power generation, irrigation,
domestic water supply, food grains
production, Tourism Development, fishing,
navigation development and sometimes even
water sports and other recreational activities.
Therefore, it is essential that the development
of the river water project takes place in a
coordinated fashion.

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BIBLIOGRAPHY
-
CREDITS
Dr. Raj Narain Singh
Dr. Rajni Patel
Ms. Simran
Ms. Jewel Bhateja
Ms, Pooja Lakshmi

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Chapter 4
Generation of Electricity
Why is electricity generation important?
Power is basic human need. It is one of the critical infrastructures on which sustainable economic
growth depends. The power generation strategy of the government focuses on the low-cost
generation, optimization of capacity utilization and fuel mix, controlling the input cost,
technology upgradation and utilization of non-conventional energy sources.
Climate Change is a matter of continuing concern. Further, massive electricity requirement is
expected in next few years for following usage:
➢ E-Mobility (Transportation sector)- Government of India has ambition to introduce
electric vehicle by 2030 therefore massive electric vehicle charging infrastructure had to
be laid down and accordingly electricity production.
➢ Water Desalination- 30% of the India’s Population resides near the sea shore, keeping in
view the water scarcity it will be advisable to have massive desalination program from
abundant sea water. This can be done by cheap production of electricity through solar
and/or wind energy especially off shore wind power plants and floating solar power plant.
Electrification of cooking- 3.2 billion people across the world do not have clean fuel to cook.
Further they use cow dung cakes and precious trees are cut for cooking food. Leading to indoor
pollution and consequent health hazard for women and children and climate change. This can be
easily rectified by solarization of cooking. Hence, ramping up electricity generation will help in
mitigating climate change besides other benefits. In line with this, the government of India has
come up with ‘Go Electric Campaign.’
India will require massive electricity generation capacity by 2030 to achieve the above objectives.
Massive investment in the generation capacity is needed to ameliorate the situation. There is a
large gap between unit cost of supply and revenue. Clearly the DISCOM’s are not in the position
to invest funds into generation.
In this background, the Act of 2003 has brought about a fundamental change in the regulatory
regime of generation. The Act has brought in the regime of license free generation of electricity.

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Moreover, captive generation is being freely permitted. However Nuclear Power generation
remains a licensed activity and Hydro generation needs techno-economic concurrence of Central
Electricity Authority.
Delicensing of Generation
Section 7 of the Electricity Act, 2003 states that-
“Any generating company may establish, operate and maintain a generating station without
obtaining a licence under this Act if it complies with the technical standards relating to
connectivity with the grid referred to in clause (b) of section 73”.
By virtue of Section 7, Generation of Electricity has been de-licensed. However, following
technical standards must be satisfied:
• Technical Standards as to grid connectivity
• Technical Standard as to environment
Technical Standards as to Grid Connectivity
Section 73 (b) states that:
The Authority shall perform such functions and duties as the Central Government may prescribe
or direct, and in particular to- specify the technical standards for the construction of electrical
plant, electric lines and connectivity to the grid.
The CEA has been mandated to specify technical standards for grid connectivity and all generators
must comply with the specifications to be part of the regional or local grid systems. The central
electricity authority has released following regulations with respect to the above:
➢ CEA Technical Standards for Communication system in power systems operations
Regulations, 2020
➢ CEA Technical Standards for Distributed Generating sources Regulations, 2013
➢ CEA Technical Standards for Construction of Electrical Plants and Electrical Lines
Regulations, 2010
Technical Standards as to Environment

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Various Environmental norms have to be complied by any entity proposing to install a generation
station. The Acts which deal with standards to be followed are:
ACTS
1. Air (Prevention and Control of Pollution) amended Act, 1987
2. Water (Prevention and Control of Pollution) Amended Act, 1988
3. Forest Conservation Act, 1980 as amended in 1988 which stipulates compensatory
afforestation for diversion of forest land for non-forest purpose
4. Environment (Protection) Amended Act, 1991
5. Wildlife (Protection) Amended Act 1991
6. Public Liability Insurance (Amendment) Act 1992
7. Environment in Impact Notification, 1994 under Environment Protection Act 1986
8. Coastal Regulation Zone Notification, 2018
RULES
1. Environment Setting of Industrial Project Rules 1999
2. Hazardous Waste Handling and Management Rules 1989 amended in 2000
3. Manufacture Storage and Import of Hazardous Chemical Rules 1989 as amended in 2000
4. Noise Pollution (Regulation and Control) (Amendment) Rules, 2010
5. Environment (Protection) Amendment Rules, 2018
First power plant without a licence post Electricity Act, 2003
Tata Power Company constructed merchant power plant with an installed capacity of 120 MW at
Jojobera Jharkhand. The Fourth unit has become operational on 2005. This was the first Power
Plant without requirement of licence by virtue of section 7 of the Electricity Act, 2003.
Merchant Power Plant
The first operational merchant power plant is Malana - Hydro Power Plant located in Kullu district
of Himachal Pradesh which is owned by Bhilwara Energy Ltd. And which is operational since
1993.

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It will be interesting to note that merchant power plants do not have long term power purchase
agreement (PPA). They sell power on competitive basis to utilities and power traders. They can
utilize the facility of power exchanges also to sell power across India.
Additional conditions in certain cases
Notwithstanding de-licensing of generation, following forms of generation of electricity sale have
to fulfil additional conditions:
• Hydroelectricity power generation; and
• Nuclear power generation
Duties of Generating Company
The duties of Generating Company shall be to establish operate and maintain generating stations
tie lines substations and dedicated transmission lines connected therewith in accordance with the
provisions of the act or the rules or regulation made thereunder.
• A generating company may supply electricity to any licensee in accordance with the
electricity act.
• A generating company may supply electricity to any consumer subject to the regulations
made under subsection 2 of section 42 (open access for distribution areas).
• Every generating company shall submit technical details regarding its generating stations
to the appropriate Commission and the authority.
• Every generating company shall co-ordinate with the central transmission utility are the
state transmission utility as the case may be for transmission of electricity generated by it.
Power of Government to give directions in extraordinary circumstances
The appropriate government can by virtue of section 11 of the Electricity Act, 2003 give direction
to the generating companies in extra-ordinary circumstances to operate and maintain any
generating station.
The expression “extraordinary circumstances” here means circumstances arising out of
• threat to security of the state,
• public order or

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• or a natural calamity or
• such other circumstances arising in Public Interest.
The commercial interest of generating company has been protected by the Section 11 (2) which
provides that in case of adverse financial impact the appropriate commission may offset the same.
Curiously transmission trading or distribution utilities have not been provided any remedy under
the electricity act for any adverse financial impact on them in case of the direction of appropriate
government in case of extraordinary situation. effectively they have to bear the cost of such a
direction if any.
Constitutional Provisions
Article 257 clause 1 provides that-
“The executive power of every state it shall be so exercised as not to impede or prejudice the
exercise of executive power of the union, and the executive power of the union shall extend to the
Giving of such directions to the state as may appear to the government of India to be necessary
for that purpose”
Moreover, in case of national or other emergency which can be called as an extraordinary situation
the Central Government will have complete powers to give direction to the State Government.
Furthermore,bytheauthorityofarticle265ifastategovernment failstocomplywithortogiveeffecttoany
direction by the Central Government, the president may hold that a situation has arisen in which the
Government of the State cannot be carried out in accordance of the Constitution and this can be a ground to
enforce President Rule in the State. This effectively shows that the central government has wide powers to
give directions to the State Government and through State Government to the generating plants within the
executive authority of the State Government.
Small power plant in rural areas (Including Agro-PV and Bio Energy)
This is a viable option now after the passing of Electricity Act, 2003. It is provided in the Act that
an entity can take up generation and distribution in a rural area without any licence from the
concerned authority. This will be highly empowering to the NGOs and local development
institutions working in a rural area. The definition of rural area it is expected will be synchronous

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with the eleventh schedule (Article 243G) of the constitution. With Central Government launching
PM KUSUM Yojana (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) the
Farmers can set up Solar Plants from 500 kW to 2MW wherein Central Government Provides
Certain Financial Benefits.
Energy Dialogue with Raj Singh Niranjan
Energy sector has to serve 1.6 billion population of India in 2030. Hence the energy demand will
rise exponentially. Also keeping in view E-Mobility Revolution, water through desalination and
electrification of cooking food, we must ramp up power production to 10X. Additional power can
be utilized for production of hydrogen fuel and export across the world through International
Renewable Energy Grid (One sun, One world, One Grid).
Keeping in view the immense benefit of Agro PV in India and its illegality in the present Legal
system, it is proposed by TILA that a detailed “Legal Report on legal aspects of Agro PV in India”
should be prepared jointly by leading solar association & TILA, which can be funded by any
international/national organization so that Legal Solutions can be suggested state-wise for all 28
states to make a strong Legal Foundation for future Agro PV projects.

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DGEF Training Calendar
(July to Sept 2021)
Training Course Extensive content Next Batch / Contribution / last date for
Admission / Nomination
Electricity Laws – Online Certificate
Course
(USP- Live interactive Sessions through
Weekly Energy Dialogue of 100 Min)
Module 1: Electricity Policy
Framework
Module 2: Development of
Electricity Market
Module 3: Regulatory aspects
of electricity
Module 4: Dispute
Adjudication in Power Sector
Module 5: Consumer
Protection
Module 6: Energy Issues
Next Batch – Starting on 1st July 2021 to 30th
September 2021 (3 months)
Contribution - INR 19,000/- (USD 267/-)
Last date for Admission (early Bird) – 15th May
2021
Last date for Admission/ Nomination – 15th June
2021
Advanced Course
Energy Arbitration – Online Certificate
Course
Module 1 – International
Arbitration Law
Module 2 – National Energy
Arbitration Law.
Module 3 – Landmark
Judgements.
Arbitration Centre
Module 5 – Arbitration
Contracts.
Module 6 – Global Energy
Arbitration Centre Rules
Next Batch – Starting on 1st July 2021 to 30th
September 2021 (3 months)
Contribution - INR 9,000/- (USD 132/-)
Last date for Admission (early Bird) – 15th May
2021
Last date for Admission/ Nomination – 15th
June 2021
Energy Merger & Acquisition and
Insolvency Laws – Online Certificate
Course
Module 1 – Restructuring &
Growth of Energy Sector in
M&A
Module 2 - Company Laws in
respect of Mergers &
Acquisition
Module 3 – Role of SEBI in
terms of Corporate M&A
Module 4 – IBC Laws 2016 vis-
a-vis M&A
Module 5 - Electricity Act,
2003 in respect to M&A
Module 6 - Other relevant
Laws & Policies & Landmark
Judgements & Success stories
Renewable Energy / Charge Point
operators Land acquisition Laws Online
Certificate Course
Module 1 – Re land
Acquisition- Introduction &
Importance
Module 2 – Solar Policies with
State & Central Electricity Act,
2003

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Module 3 – Agriculture &
Private Land Acquisition for RE
project
Module 4 – Land Acquisition
by Central & State Government
& Public Sector Undertakings
Module 5 – RE legal issues and
Landmark Judgments
Module 6 – Workshop on Legal
Due Diligence Report,
Transactional Documentation
and Registration of Conveyance
Solar Policy & Law Online Certificate
Course
Solar Policy (ISA/IRENA/IEA)
Module 2 – National Solar
Policy in light of Electricity Act
2003.
Module 3 – State Solar
Policies (with emphasis on the
States of Rajasthan, Gujarat,
Maharashtra, Karnataka,
Andhra Pradesh and
Telangana.
Module 4 – Roof Top Solar &
Net metering Regulations
issued by various State
Electricity Regulations.
Module 5 – Ground Mounted
Solar, Solar Captive plant and
Group Captive power Plant-
Legal Position and Regulatory
Benefits
Module 6 – Regulatory
framework for
Solar Manufacturing
(PLI/ALMM/BCD), Floating
Solar, Energy Storage & Green
Hydrogen.
Wind Energy Policies & Laws Online
Certificate Course
Module 1- International wind
energy policies and laws.
Module 2- National wind
energy policy and law (in
light of the Electricity Act,
2003).
Module 3- State wind energy
policy and law in light of
state acts
Module 4- Compliances for
development and
construction of wind power
project.
Module 5- Compliances
during operation and
Decommissioning of wind
power project
Module 6- Legal challenges
and solutions in wind energy
sector
E- Mobility and Energy Storage Policy
and Laws Online Certificate Course
Module 1- Understanding E-
Mobility and E-storage
Module 2- InternationalLaw
with respect to E-mobility and
Energy Storage

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Module 3- National laws and
Policies with respect to E-
Mobility and energy storage
Module 4- State laws and
Policies with respect to E-
Mobility and energy storage
Module 5- Policies and Laws
for Charging Infrastructure
Module 6- Policies and Laws
for railway and Metro
Transaction
Module 7- Workshop for Legal
Compliance towards e-mobility
and Energy storage Business
Module 8- Energy Storage
Module 9- Challenges and
solutions for E-mobility and
Energy Storage
Environment Laws in Energy Sector
online Certificate Course
Module 1- Energy and
Environment- Background
Module 2- International
Framework and Climate
Change
Module 3- Environmental
Laws in India
Module 4- Electricity
Generation and Environmental
Laws
Module 5- Electricity
Transmission, distribution and
E-Vehicle charging
infrastructure
Module 6- Environmental
issues and Landmark
judgements with respect to
power sector
TRAINING WORKSHOPS
Workshop 1
International Energy Laws for RE
Business(Import /Export of Power)
- Cross Border
Electricity Trade Legal
Procedure (Export &
Import of Electricity)
- International Solar
Alliance Treaty- How to
get involved & support
- IRENA Treaty -
Projects
- Right to Energy &
Constitution of India
- Future Opportunities -
International Energy
grid / Solar World
Bank
International Dispute
Resolution (Global Energy
Arbitration Centre)
10th July 2021
11.50 IST to 13.30 IST(New Delhi time)
15.20 IST to 17.30 JST (Tokyo Time)
07.20 IST to 09.00 BST (London Time)
Workshop 2
Powers of Central & State Govt. to
make Act, Rules, Regulations &
Policy for Power & Renewable Sector
- Exclusive Powers of
Central Government
(License for Nuclear
Power Plant)
- Exclusive Powers of
State Government
- Joint responsibility of
Central & State Govt.
17th July 2021
11.50 IST to 13.30 IST(New Delhi time)

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- Legal Validity of State
Electricity Reforms
Acts
- State Electricity Laws
Case Study:
✓ Position of UT of J&K
& UT of Ladhak
Position of Delhi
Workshop 3
Laws for Captive Generating Plant &
benefits available
- Generation of
Electricity in light of
Electricity Act 2003
- Captive Generating
Plant
- Group Captive
Generating Plant
- Legal Benefits for a
captive Generating
Plant
Legal Structuring Captive &
Group Captive
24th July 2021
11.50 IST to 13.30 IST (New Delhi time)
Workshop 4
Laws for Transmission of Electricity
& ROW solutions
- Transmission of
- Compliance under Act
for constructing a
Transmission Section
14 (Licensing), Section
68 (Approval), Section
164 (Powers).
- Right of Ways issues &
best practices (ROW)
31stJuly 2021
Workshop 5
Laws for Distribution of
Electricity &Privatization of
Discom Procedure
- Distribution of
- License for
Distribution & Supply
of Electricity
- Parallel Distribution
Network
- Unbundling & Power
Sector Reforms
Privatization of Discoms- Legal
Issues
7th August 2021
Workshop 6
Laws for Trading of Electricity
& Power Exchanges
- Trading of Electricity in
light of Electricity Act
2003
- License for Trading &
Power Exchanges
Intra-state; National;
International Trading of
Electricity
14th August 2021
Workshop 7
Laws for Electricity Tariffs & Open
Access charges
1. Tariff Adoption & Tariff
Determination in light
of Electricity Act 2003
and related Guidelines
2. Open Access in
Transmission &
Distribution
3. Broader Framework for
Open Access Charges
applicable for
Distribution Licensee
area.
21stAugust 2021

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4. Introduction to
Electricity Duty & GST
Workshop 8
Litigation Management at Electricity
Regulatory Commission(s) &
Appellate Tribunal of Electricity
(APTEL)
1. Independent
Regulatory
Commissions
(CERC/JERC/SERC)
2. Powers of Licensing &
Tariff Adoption
3. Functions of
CERC/JERC/SERC
4. Appeal to Appellate
Tribunal of Electricity
& Supreme Court of
India
5. Central Electricity
Authority (Guru of
Power Sector)
28th August 2021
Workshop 9
Electricity Consumer Rights &
Remedies under Electricity Act 2003
1. Electricity
Ombudsmen &
Consumer Grievance
Redressal Mechanism
2. Electricity Criminal
Cases - Special
Courts- AT & C Losses
– Strategy for reducing
Theft of Electricity (Sec
135- Sec 150) ;
Compounding of
Offences ; power to
raid
3. Electricity Civil
Matters - Assessing
Officer & Appellate
Authority
4. Consumer Courts
Jurisdiction
5. Landmark
Judgements
4th September 2021
Workshop10
Resolving Electricity Disputes
through Arbitration& Competition
Law
1. Energy Arbitration
2. Electricity Act 2003 &
Arbitration Act
3. Case Laws –
Appointment of
Arbitral Tribunal,
Interim measures (Stay
Orders)
4. Energy Competition
Laws
5. Institutional
Arbitration – Global
Energy Arbitration
Centre
11th September 2021
Workshop11
Renewable Energy Land Acquisition
Laws
- Renewable Energy &
land Acquisition
- Constitutional Position
& Land Laws
- Electricity Act 2003
&Solar Policy
Framework
- Best Practices for Land
Acquisition for Solar
Project (Challenges &
Solutions)
18th September 2021

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Note 1- Contribution is INR 4900/- (USD 77) per Workshop per Candidate.
Note 2- Certificates will be awarded by Dr Gopal Energy Foundation (DGEF)
Note 3- Nominations /Admission must be done 7 days in advance to enable us to share Background
discussion papers, Notes and also to create a WhatsApp group for Knowledge sharing and networking
with the participants and also sharing link for joining the Workshop.
Note 4 – Individual professionals can register online at www.dgef.in. Companies can Nominate Forms
- Best Practices for land
acquisition for Wind
Project
- Strategy for securing
rights for Wind Farm
Pathways
Right of Way for evacuation of
Power from Renewable Energy
Generating Plant.
Workshop 12
Energy Merger & Acquisition and IBC
for Growth of Renewable Energy or
Power Company
1. Legal Structure for
Growth of Renewable
Energy / Power
Company
2. Electricity Act 2003
& Companies Act
2013 for M & A
3. Electricity Act 2003
& Insolvency &
Bankruptcy Code
2016 for Corporate
Resolution –
Acquisition through
IBC Route
4. Sample Legal Due
Diligence for
RE/Power Company
before acquisition.
25thSeptember 2021

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About the Book
The Electricity Act, 2003 is a path breaking legislation. It has fundamentally modified and has established a new
National Electricity Market for India. The focus of this book is Electricity Act,2003 however applicable laws for the
power and renewable energy sector have been covered which includes-
❖ State Electricity Reforms Act
❖ State Electricity Duty Act
❖ Electricity Accusation and Nationalization Act
❖ Atomic Energy Act, 1962 and Civil Liability for Nuclear Damage Act,2010
❖ National Electricity and Tariff Policies
❖ State Renewable Energy Policies including Solar/Wind/Hydro Policies.
❖ Regulations by CERC/CEA/SERC/JERC and rules modified by Government of India and State Government.
The Electricity Laws has fundamentally changed the way energy utility functioning in India. India has reformed its
electricity market to best International Standard. This Law can show other developing Countries the path for electricity
reform and for removing the curse of energy poverty and mitigating climate change.
About The Author
Raj Singh Niranjan is the Managing Partner of Trans India Law Associates (www.tila.in), the largest Law firm in the
World in Energy Sector. What started as a simple Legal practice in 1984 is today a global provider of Energy Laws,
solutions, covering Solar, Wind, Hydro, Thermal and Corporate Laws services in over 723 Districts across INDIA
supported by 10,786 Professionals (Attorneys/ CA/ CS/ Experts); 51 Global Legal Partners and 9 representative offices
(BANGLADESH -Dhaka, CHINA- Guangzhou, Shenzhen, Shanghai, CAMROON, MAYANMAR, NEPAL- Kathmandu,
POLAND- Warsaw, SOUTH KOREA- Seoul, UAE-Dubai).
Mr. Niranjan’s vision and leadership have led TILA to become the fastest-growing Indian-owned Law Firm in the world,
and also Legal Adviser to International Solar Alliance (ISA), the first UN/Inter-Governmental body to have Head Quarters
in India.
Mr. Niranjan is a published author in key industry publications, a sought-after speaker, and Father of ‘Right to Energy’
movement and a philanthropist. He has been Speaker in SNEC-Shanghai, GBF-Guangzhou, National Power Training
Institute (NPTI), Central Board of Irrigation & Power (CBIP), National Institute of Solar Energy (NISE) and is an advocate
for Right to Energy to be included as a Fundamental Right in all the Constitutions of the World and as a basic Human
Right in Universal Declaration of Human Rights.
As the Parivartan Achievers Award 2017 Winner for Excellent achievement in the “Legal Field”, Mr. Niranjan is invited
across the world for Regulatory solutions especially in Energy events. Mr. Niranjan is a Delhi University-School of Law
Alumni and schooling from prestigious Raj Kumar College, Chhattisgarh & Daly College, Madhya Pradesh.
Published By- Dr. Gopal Energy Foundation

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