Won’t privatise power supply companies, will bring more competition: Singh

The present discoms, he said, would remain. “But they should be asked to compete so that you, as a consumer has a choice. And if that discom is not performing (and) somebody else can give you a better service, you can switch (to a different power supplier) just like you switch your mobile service provider. That’s my vision,” Singh said.

“The concept of and provision for multiple licensees to operate in a same area of supply has been enshrined in the law in (The Electricity Act of) 2003,” he said. The Act provides for more than one licensee to operate in the same area of supply. That means competition, according to the Union Minister. There is one clause in the law which allows this to take off, he said. “This (power supply by private firms) is going on in Mumbai. But it is not taking off (in other places) due to one difficulty. It is that difficulty we are seeking to remove through the amendment,” he added.

The proposed amendment, which is now being scrutinised by a Parliamentary Committee, will make sure that there is a provision in law for multiple licensees to operate in same area of power supply, Singh said. The proposal to allow private companies to supply power, it can be recalled, was met with opposition from many state governments. It was first mooted in 2020-21.

On the clearance for coal-based power plants despite the push for renewable sources, Singh said that the such power plants were essential to ensure round the clock power supply. “We need a dispatchable load whenever required…. Once renewable energy becomes viable then coal will be retired. Otherwise, no.

I am not going to compromise with the availability of energy for the requirements of my growth and for the better standards of living of our people…. Irrespective of where it comes from we shall provide the energy for maintaining and retaining the rate of growth,” he added.