Gujarat: Bill to reduce compliance burden to industries passed unanimously

Kanu Desai said the acts of non-compliance will be bifurcated as “low, moderate and high categories” and the imprisonment under this provision shall not apply to acts classified as “low or moderate category.”

Gujarat Energy Minister Kanu Desai

The Gujarat Electricity Industry (Reorganisation and Regulation) (Amendment) Bill, 2022, which aims to promote “ease of doing business” by decriminalising some acts of non-compliance by industries, was passed with an unanimous vote in the state legislature Wednesday.

“The Bill seeks to amend the Gujarat Electricity Industry (Reorganisation and Regulation) Act, 2003 with a view to reducing compliance burden to the industry and consumers with a progressive action towards Ease of Doing Business,” stated Energy Minister Kanu Desai while introducing the Bill.

“Section 54 of the said Act, provides that where a licensee or any other person fails without reasonable excuse, to comply with any order, direction or requisition lawfully made or given under any provisionnof this Act… he shall on conviction be punishable with imprisonment which may extend to three months or with fine not exceeding Rs 2 lakh or with both,” the minister said pointing out the existing law.

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He said the acts of non-compliance will be bifurcated as “low, moderate and high categories” and the imprisonment under this provision shall not apply to acts classified as “low or moderate category.”

“It is however under consideration of the government that as a means of Ease of doing Business initiative in electricity industry, some of the acts of non-compliance of the said directions, orders or requisition, etc. may be de-criminalised and only grave or serious cases of non-compliances may be subject to punishment of imprisonment so as to achieve deterrence against non-compliance,” Desai added.

The Congress MLAs including CJ Chavda who spoke on the Bill did not oppose the provision and said similar provisions should be made for resident and agricultural power consumers.

On Wednesday, the Gujarat Assembly also passed The Gujarat Goods and Services Tax (Amendment) Bill, 2022, by a majority. While Congress MLAs opposed the rise in GST that they said the Bill will usher in, finance minister Kanu Desai said that decisions taken by the Goods and Services Tax Council in its 43rd and 45th meetings require amendments in the Goods and Services.

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“Accordingly, the Central Goods and Services Tax Act, 2017 and the Integrated Goods and Services Tax Act, 2017 have been amended by the Parliament by the Finance Act, 2022. In order to maintain the uniformity in applicability of the provisions of the Central Goods and Services Act, 2017 and the Gujarat Goods and Services Tax Act, 2017, it is expedient to amend the Gujarat Goods and Services Tax Act, 2017,” Desai added.

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