Draft National Electricity Policy 2021, 06 - 05 – 2021

Posted On : July 08, 2021

Please refer to the public notice issued on the website of the Power Ministry on 27 April, 2021. It is seen that there is ambiguity in the MOP documents which evidently appear to conflict with  specific provisions of Electricity Act 2003  and which , therefore, cannot be made as a basis  for  overhauling of the National Electricity Policy of Feb 2005 .  The relevant portions of Electricty Act 2003 are Sec 3 (1)  and Sec 3 (3). These sections are quoted

Section 3. (National Electricity Policy and Plan) --- (1) The Central Government shall, from time to time, prepare the National Electricity Policy and tariff policy, in consultation with the State Governments and the Authority for development of the power system based on optimal utilisation of resources such as coal, natural gas, nuclear substances or materials, hydro and renewable sources of energy. (2) The Central Government shall publish National Electricity Policy and tariff policy from time to time. (3) The Central Government may, from time to time, in consultation with the State Governments and the Authority, review or revise, the National Electricity Policy and tariff policy referred to in sub-section (1) .

While Section  3(1)  is applicable  if Govt intends to prepare  the NEP, sec           3 (3)  is applicable if Govt intends to  review or revise  the NEP. 

Whether the intent is to prepare   or whether the intent is to   review or revise, in   both cases  two conditions apply

Consultation with  State Governments 

Consultation with   Authority  ( ie CEA).

The GOI letter of 27-04-21 has the Subject of

Preparation of  Draft National Electricity Plan 2021 

The opening para refers to Sec 3(3)  which is applicable  to review or revise function. However in para 4 of GOI letter dt 27 Apr 2021  it refers to  the Committee to  prepare and recommend  NEP 2021  . There is a confusion and ambiguity  whether   GOI  is acting under Sec 3(1)  or under Sec 3(3).GOI order  of 12 April  2021   refers to Sec 3(3) in opening para  to review or revise NEP  but in   para 2  of letter dt 12-4-2021  states  the function to  prepare and recommend    the NEP.

2.  As stated earlier, in both cases, of Sec 3(1) as well as 3(3)   the GOI has to consult with State Govts and consult with CEA.  On this provision there is no ambiguity. 

3.  However in letter of 27 Apr 2021  and Annex 1  the CEA has been excluded since the letter has not been addressed to CEA  and CEA has been ignored/excluded in presentation schedules  given on annex 1 .  There is clear violation of Electriity Act 2003.

4. Further  the  Consultation  with  all State Govts  has not been ensured /specified  in the Presentation Schedule given on Annex 1  of letter  dt 27 Apr. This does not comply with sec 3(1) as well as 3(3)   of the Act.

 5. GOI order of  12 April 2021  constituting Expert Committee has given representation to  only 5 States  which  is  against letter and spirit if E Act  Sec 3(1)  as well as Sec 3(3).

 6.  The  Order  of 12 April  2021  gives representation to   Chairperson    CEA  whereas  Consultation  with  “ Authority”  was a requirement of Statute.  Chairman CEA is not synonymous with  Authority.

 7.  On account of above factors  the GOI  must  scrap  the draft amendments. The GOI  must  first of all  issue a statement of objects and reasons  to clarify whether this is an exercise  to review/revise the NEP  or whether the intent is to totally  overhaul, and if so, the reasons .

8.  AIPEF has already stressed   through its  letter No 38  and earlier representations that this  critical time of Pandemic  is not the occasion to tamper with Statute  or Policy in force since 2005. There is grave concern amongst power engineers and workers that GOI  is exploiting  a huge crisis of the pandemic to  push its policy of privatization of the power sector. We demand that the draft policy that conflicts with the Act  must be withdrawn.Thank you with regards.

Sincerely Yours

Shailendra Dubey