Kindly refer to MOP notice dated 27/4/2020 vide which the time period for filing of objections has been extended from 08/05/2020 to 05/06/220

2.     Please refer All India Power Engineers Federation letter No. 23 - 2020 / Electricity (Amendment) Bill 2020 18th April 2020d vide which All India Power Engineers Federation had sought extension of time up to 30/9/2020 for filing of comments and objections to the draft amendments so that All India Power Engineers Federation can get the necessary inputs in feedback for finalizing its objections.

3.     Moreover, Ministry of power has allowed to extension of time only up to 05/06/2020 which is far too inadequate and unacceptable be repeat our request for extension of period up to 30/9/2020 or up to period when normalcy is restored. The grounds and factors due to which we seek time up to 30/9/2020 or up to restoration of normalcy is summarized as under at sr. no. A-B below.

A)     Using the corona virus crisis across the country to initiate power sector reforms is highly objectionable and unacceptable.

        On 01/05/2020 Prime Minster took a meeting to review the power sector and the press report of LIVE MINT dated 02/05/2020 is quoted “Reflecting India’ strategy of using the crisis to initiate reforms, Prime Minister Narendra Modi took a meeting of the power sector on Friday wherein various long-term reforms were discussed”.

 

Since the corona virus crisis was of global nature and had no link whatsoever with the power sector of India, here is no logic to use this  crisis as a matter of strategy to initiate so called power sector reforms.

Up to the Hon'ble Supreme Court of India the seriousness and gravity of this crisis was acknowledged and only the most urgent time bound matters were heard. CERC, SERC and APTEL rescheduled their listings in view of the lock down. Even the Ministry of Power GOI vide public notice dated 25/3/2020 ordered the closure of Ministry of Power in view of the health hazard. The lock down period is still in force and presently extended up to 17/5/2020 and statistics show beyond doubt that the health hazard has by no means been controlled or over come.

B)     Ministry of power itself has not been able to restore normal working. Even though MOP notice of 25/3/2020 issued instructions that electricity being essential service, the O&M activities and NPMC (National Power Monitoring Center Functions) should not suffer, be actual reality or position on the ground is that

        (i)    Daily power generation data has not been updated in the NPMC website since 18/3/2020

        (ii)   Monthly power generation report has not been updated since February 2020.

        (iii)  The post of Member Gird operation and Distribution , CEA still remains vacant (being held on adhoc dual charge basis). Out of 8 whole time members of CEA permissible under the Act, there are only three whole time members in CEA. The selection for these was to be done by Ministry of Power.

        (iv) All India Power Engineers Federation had requested MOP for displaying the proposed amendments to the Act in track change mode (as on the pattern of previous similar instances). There is no response to our request which was directly related to the amendment exercise.

4      The Secretary General of united nation had stated on 01/04/2020 that “Corona Virus is the worst global crisis since second world war”.

        This is an extra ordinary statement and assertion which is justified by the stark truth and reality behind it and the stature of the authority issuing this  statement.

        The United Nations secretary general further stated that “ the corona virus disease represents a threat to everybody in the world------ and    an Economic impact that will bring a recession that probably has no parallel in the recent past.” Surely, these are not the circumstances or conditions to justify the GOI strategy for using the global crisis for initiating far reaching changes in the statute. The Amendments  proposed to E Act were issued on 17 April  but the statement of objects and reasons does not anywhere indicate the reasons why the amendments are being proposed when the whole Country is in grave unprecedented crisis .

        It is well known that most Discoms and state Gencos are in extreme financial crisis and recession due to the impact of Lock down. Farmers have been hard hit there have been serious losses in the agricultural sector due to delay in harvesting and economic slowdown and constraints on marketing agricultural crops. Farmers have been dumping their crops like vegetable on the road unable to find buyers.

        State Discoms have suffered huge financial losses due to closure of industry and loss of revenue. High cost PPAs  and liability of capacity charges has made the finances of Discoms unsustainable.

        Under such circumstances of recession the MOP proposals regarding direct benefit transfers of subsidy are entirely utopian, misplaced and unworkable  while subjecting farmers to further huge economic distress .

        We need to collect extensive data and documentation to compile the consequences of proposals like DBT.

        5      All India Power Engineers Federation firmly believe that the most important stake holder in the power sector is the consumer and particularly the agricultural consumer who maintain the food security of the nation. We have to extensively interact with such consumers whose views, concerns and hardships have to be addressed and given due consideration by the Ministry of Power. The fact that the entire country, particularly power sector is in grave crisis is borne out by the series of public notices and circulars issued by the Ministry  of power by which the various dimensions of the crisis have been dealt with . The public notices / circulars of Ministry of Power are listed as under and soft copies of the circulars have been attached.

       

 

6       Dealing with Recession

         All India Power Engineers Federation submits that the coming summer months of maximum demand and maximum agriculture load will put extra stress on Discoms and Gencos of the state sector as the agricultural requirements have to be met for ensuring food security while on the other hand state Gencos and Discoms would be facing extreme financial constraints in meeting operational and power purchase expenses . The GOI policy of using the crisis to initiate reforms is totally out of place and unjustified as it does to seek to address the challenges resulting from lock down and economic recession which will surely manifest in the coming weeks and months.

        Even in the best of times the Discom supplying agricultural loads have to face maximum stress during paddy season. In the present circumstances of economic slowdown and loss of revenue already being faced, the biggest challenge before the Ministry of Power should be to help the state Gencos and Discoms in meeting this high energy demand of coming summer season  and  priority load of agricultural sector. We repeat that this is not the time or the occasion to introduce far reaching changes in the statute. This is rather the time to work out the relief and support necessary to sustain the State Discoms and Gencos in the coming summer months. The Statement of Objects and Reasons  while on one hand does not anywhere justify how and why the amendments are being moved in time of grave crisis , it also does not justify anywhere that these proposals should be decided early or on time bound urgent basis. Prima facie therefore the proposed amendments must be put on hold . On the other hand we stress that the priority before Ministry of power must be to decide measures to support and sustain the operations of State Discoms and Gencos to meet the economic crisis and financial crunch that would surely confront the State Discoms and Gencos in paddy season starting from June 2020. This is a time bound requirement of Kharif/paddy crop which cannot be kept pending or waiting as agriculture must be sustained.

7   On account of the above factors and compelling circumstances AIPEF again requests that the date for filing objections to proposed amendments to E Act 2003 should be extended from 05 June to 30 Sept 2020 or when normalcy is restored.

Thanking you with regards.

 

Shailendra Dubey

Chairman