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