The Ministry of Power GoI had circulated on 17 April the draft Electricity (Amendment) Bill 2020 to amend the Electricity Act 2003 and objections are to be filed by 05 June. This bill goes against the letter and spirit of Constitution of India where Electricity is a concurrent subject while this Bill provides for dominating and overriding powers to the Central Government on critical matters such as Tariff, Subsidy, Regulatory Commissions and setting up of separate quasi judicial Tribunal for enforcement of contracts. Provision for ensuring payment security mechanism before scheduling and dispatch of power is another step to favour private parties and IPPs at the cost of State Discoms.
2. In such a scenario it is critically important for States to assert their objections to the Bill and to press for putting the bill on hold as it is not justified to move such amendments when the entire country is facing the corona virus crisis . It is critically important that States should share their objections to the Bill through Circulation. Website Telangana Today has given views of CM Telangana as under
Hyderabad: Chief Minister K Chandrashekhar Rao said Telangana government would oppose the proposed amendment to the Electricity Act Amendment Bill 2020. Describing the proposals of the Union government as draconian, he said the amendments if passed in Parliament would vest the powers of distribution and subsidies in the hands of the Central government.
“We will oppose the Bill in Parliament and will stop it by making a very big noise against it,” he said. Rao expressed apprehensions whether the State will be allowed to provide 24 hour free power to the farm sector. “What will happen if the distribution part is privatised. Will they allow us to supply free power? The Bill says that the government will have to pay the subsidy amount directly to farmers. Will it be possible?” he asked.
2.1 Views and objections of Bihar Govt are published in Dainik Bhaskar of 01st May. Quoting Bihar Energy Minister Sri Brijendra Prasad Yadav news paper reported that Bihar Govt has written letter to Central Govt opposing distribution sub licencee & franchisee, elimination of subsidy, increasing Cental Govt control through this Bill and many other clauses. (News Paper copy attached).
3 AIPEF had represented to Ministry of Power GoI for extending date of filing objections to 30 Sept 2020 and further to put the Bill on hold, through letters of 18 Apr and 04 May which were circulated to all States CMs.
4. All India Power Engineers Federation (AIPEF) urges you that all States may represent to the Ministry of Power for putting the draft Electricity (Amendment) Bill 2020 on hold and that the objection letters may be shared among the States.
Thanking you with regards.
Sincerely yours
Shailendra Dubey
Chairman