Power Minister Says Reforms Will Grant States Equal Say, Won’t Burden Consumers
The objective of the Draft Electricity (Amendment) Bill, 2020, and proposed tariff policy is to make sector viable, RK Singh says.
India’s Power Ministry on Thursday said a draft bill proposing changes in the nation’s power law will maintain a balance between the interests of the states and the central government and consumers won’t have to bear any unnecessary burden.
The objective of the Draft Electricity (Amendment) Bill, 2020 and proposed tariff policy is to make power sector viable, RK Singh, minister of power, said in a videoconference. High losses of distribution companies, he said, are not sustainable.
According to data on the government’s Praapti portal for March, power discoms are saddled with Rs 94,000 crore in dues.
The Tariff Policy 2020, yet to be notified, deals with a framework for determining tariffs and lays out mechanisms to competition, efficiency and fairness.
The power ministry clarified:
- An independent committee is responsible for appointing key positions in state electricity corporations. It will be equally balanced between central and state members. The Power Ministry is proposing a Standing Committee with equal representation from state and central governments, headed by the Chief Justice of the state.
- Subsidy will be paid to consumer accounts by states. In case of a delay by a state, consumers won’t suffer. If distribution costs rise due to inefficiencies of state utilities, these won’t be passed to consumers.
- Power tariffs are fixed by state and central regulators, not by central and state governments.
The power minister asked the industry to focus on made-in-India products and reduce dependence on imports.
