As per the statement of Sh. R.K. Singh Minister I/C, Power published in Economic Times 30/06/2021 it appears that Govt. of India intends to introduce the Electricity (Amendment) Bill 2021 in the forthcoming monsoon session of parliament. On this subject the All India Power Engineers Federation (AIPEF) representing power engineers of the country seeks to bring the following urgent issues to your kind notice.
1. On 05th February 2021 Ministry of Power circulated the Draft Electricity (Amendment) Bill 2021 to amend the Electricity Act 2003. However, the draft amendments were circulated only to Principal Secretaries/ Secretaries of energy/ power of States and UTs, for comments to be sent within 2 weeks. This procedure is anomalous and defective as the important stakeholders have been excluded from giving their comments, viz
a) Electricity consumers
b) Electricity workers and engineers
2. Since electricity is a concurrent subject under the Constitution of India, the exercise to amend Electricity Act 2003 by excluding significant stake holders from states, viz consumers and electricity workers and engineers would run contrary to the Constitution itself.
3. Even the proper participation of States /UTs was not ensured, i.e. the implementation of the Ministry of Power letter of 05th February 2021 itself was anomalous and defective.
a) A totally inadequate time of 02 weeks was given for submission of comments by States/UTs. The significant UT of J&K reported in writing that Govt. of India letter of 05/02/2021 was not even received by them.
b) Even before completion of 02 weeks time, i.e. even before 19/02/2021, the Ministry of Power issued a letter on 10/02/2021 by which a video conference was proposed to be held on 17/02/2021 to give views on amendments.
c) The time frame of video conference was such that totally inadequate time was given to states for example 1 hours slot was given to 10 States/ UTs of NR, 1 hr slot was given to 6 States/ UTs of ER, 1 hour slot for 8 States/ UTs of WR and 1 hr for 12 States / UTs of ER+NER.
d) Thus, while giving 2 weeks for giving comments, Govt. of India directed that comments be given within 12 days through video conference while giving inadequate time slots for comments.
e) Even after rushing through the process of obtaining comments/ feedback, Govt. of India was unable to proceed as it had to engage in dealing with the virus pandemic along with the affected states. The All India Power Engineers Federation had raised this issue at the very beginning by seeking a period of 06 months on account of the prevailing pandemic.
4. Even as the country has not yet normalized its working after the second wave of pandemic, and with estimates of 3rd wave in October, All India Power Engineers Federation again stresses that proposed amendments to statute (Electricity Act 2003) should be deferred for detailed discussion only after normal working is restored. (for example the video conference of 17/02/2021 was a clear example of how states were unable to give detailed feedback / objections).
5. The coming months are going to be crucial for the country and its economy which is trying to recover from 2nd wave of the pandemic. The electricity demand would be maximum on account of agricultural demand being maximum, while at same time the demand caused by hot weather conditions and increasing industry requirement has to be met. The priority of hospitals and related demands would have to be ensured.
6. On the other hand, trying to rush through amendments to the Electricity Act 2003 would cause far reaching harms resulting from hasty decisions without adequate analysis or consideration.
7. As an example the draft amendment has a para on “international obligations regarding clean energy”. This is a subject which requires detailed analysis
a) Because the Govt. of India has enhanced the green power target of 175 GW by 2022 to 450 GW by 2030.
b) How this green power is to be apportioned to states and the impact upon backing down of conventional thermal power stations needs to be studied in detail.
c) While Govt. of India / CEA/ POSCO carried out a study on Greening of Grid w.r.t. absorbing 175 GW by 2022 there is no study relating to absorbing 450 GW by 2030.
d) How and why the Govt. of India is pushing forward 6x1600 MW nuclear park at JAITPUR while the track record at Finland by the same company is the worst .Furthermore, the operational requirement of nuclear power (base load operation) is opposite to solar power.
e) Govt. of India is ignoring the extremely high cost of 6x1600 MW units nuclear, which would come as an unbearable burden on States. The Govt. of India should bring out a white paper on the disastrous track record of 1600 MW Areva nuclear unit at Olkiluoto Finland with data on cost escalation and failure to Commission the project despite huge delays and why the same units are being selected for NPCIL JAITAPUR.
8. Faulty methodology for amendment.
It is seen that Govt. of India methodology in dealing with amendments in faulty and objected to
a) Proposed amendments should not be “restricted” to limited stakeholders, but instead be put on a website/public domain.
b) Extended time period be allowed for submission of comments.
c) The procedure / methodology adopted for dealing with proposed amendments should be same as for amendments of statue, i.e. the procedure which was adopted for Electricity Act 2003 should be adopted for amendment of Electricity Act 2003, since the basic issue is amendment of statute, and the significance / importance is the same.
d) The procedure adopted for Electricity Act 2003 was that firstly there was a comprehensive statement of objects and reasons secondly, the Electricity Act 2003 provisions were examined/ debated at length and were not rushed through.
9. The statement of objections and reasons of Electricity Act 2003 is quoted.
The Bill has progressive features and endeavours to strike the right balance given the current realities of the power sector in India. It gives the State enough flexibility to develop their power sector in the manner they consider appropriate. The Electricity Bill, 2001 has been finalized after extensive discussions and consultations with the States and all other stake holders and experts.
9.1 This statement should be taken as a model to be adopted by Ministry of Power
9.2 The following line of action is proposed
a) A comprehensive statement of objects and reasons be issued explaining the various amendments proposed. This should be put on public domain (MoP website).
b) A statement of various amendments proposed be given
c) The Statement be shown/indicated on Electricity Act 2003 in track change mode.
d) GoI to give explanatory memorandum on details of the green power target of 450 GW and its justification for 6X1600 MW Jaitapur nuclear project along with track record of similar units delayed at Finland.
e) The proposed amendments must not ignore key stakeholders such as consumers and electricity workers/engineers.
f) GoI must not repeat the mistake of trying to rush through the amendments by ignoring the objections.
g) The time frame for submission of comments/objections may be taken as six months after the passage of the third wave of pandemic .
AIPEF suggests that GoI may adopt the keynote principle of 2003 Act quoted as under . Transparency should be ensured at every stage. Preferably, all the objections and suggestions received should be put on the MoP website, as there is no scope for secrecy .Quote
The Electricity Bill, 2001 has been finalized after extensive discussions and consultations with the States and all other stakeholders and experts.
Thank you with regards.
Sincerely Yours
Shailendra Dubey
Chairman