NEW DELHI, AUG 5: Central Electricity Regulatory Commission (CERC) has asked government to withdraw the guidelines issued for private sector participation in the transmission sector saying it was the prerogative of the Commission to issue guidelines.Power Ministry in its letter to the Commission said that"it is to be reiterated that these guidelines were issued after long deliberations in the Ministry and after obtaining necessary approvals. These guidelines are consistent with the Electricity (Amendment) Act, 1998 and intended to facilitate private sector participation in the transmission sector.CERC said while guidelines stipulates that selection of a joint venture partner would be carried out in consultation with CERC or State Electricity Regulatory Commission (SERC), the legislative provision provides for the central Commission to grant a transmission license."While Section 27C (4) specifies that applications for grant of licence must have obtained approval of the Central Transmission Utility (CTU) before they are considered by the Commission, it is relevant to note that the manner in which such approval is to be sought by applications is once again to be notified by the Central Commission," CERC said.The CTU - Powergrid Corporation of India Ltd - in its letter to the ministry said that there was no provision in the Act for taking approval of the Commission on the procedure under which applications are to be approved by the CTU."However, the matter is being examined by Attorney General of India and Powergrid shall respond further on this issue after the views of Attorney General are obtained," the company letter stated. CERC said that it had asked CTU to submit the detailed procedure for approving private sector investments in transmission.The information provided to this Commission by the CTU has been that it is in consultation with the government for finalising the draft procedure for investment in transmission with the purpose of submitting it to Commission for approval."It is therefore, not clear as to whether the guidelines received by CERC are the result of a dialogue between the government and the CTU," the commission added.
