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This is an archive article published on May 6, 2003

Electricity Bill passed in RS

The Electricity Bill that will bring about sweeping changes in the power sector was passed by the Rajya Sabha today. After being in a state ...

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The Electricity Bill that will bring about sweeping changes in the power sector was passed by the Rajya Sabha today. After being in a state of abeyance since it was first introduced in 2001, it was only possible to get it past both Houses as Congress decided to withdraw all its amendments.

The most significant change it will bring about is make the electricity sector into an industry as the private sector will not just be allowed to transmit and distribute but also generate power. Calling the Bill ‘‘revolutionary’’, Power Minister Anant Geete said it was an attempt to consolidate laws on generation, transmission and distribution of power and to rational tariff.

The Left Front stuck to its amendments and even insisted on three division, which is unusual. Jibon Roy of the CPI(M) insisted on moving in the 108 amendments ‘‘to put it on record’’. These were predictably defeated on all three occasions though it did manage to create a flutter in the treasury benches as members rushed to fill in the near-empty benches.

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The main objections were related to the fact that 112 recommendations of the Standing Committee on Electricity that had been working for the past 15 months had not been incorporated. ‘‘It was agreed that the Standing Committees will ease the legislative process, but if unanimous recommendations are not approved, then what is the guarantee that individuals will be heard once it is passed,’’ said Nilopat Basu from the Left Front.

He was responding to Geete’s assurance that the Centre would bring a comprehensive bill in the next session to incorporate the remaining recommendations of the Standing committee. ‘‘It will not be a question of prestige for the Government. We will bring about the amendments ourselves,’’ he said. He said the Bill providing access to private players in distribution and transmission of power in the country has already incorporated 80 pc of the recommendations.

The fear that was expressed by the Left Front was that nearly 9 lakh jobs were endangered with privatisation. In earlier debates, fears were also expressed on the power and the term of the Chairman of the Appelate Tribunal. MPs like Kapil Sibal had demanded for better accountability of the State Regulatory Commissions preferably to the Parliament. Another demand was open access of private players in distribution and transmission in a time-bound limit.

With the passage of the Bill, the Government would be able to realise the goal of adding 1 lakh megawatts of power generation capacity by 2012 besides providing electricity to all villages by 2007 and all dwelling units by 2012.

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Geete tried to allay fears that the Bill would encourage large-scale privatisation and hence retrenchment of state electricity board employees. ‘‘The Bill would provide more opportunities as private players who would tap more sources and form new companies.’’

The amendments related to other issues would be brought in a comprehensive amendment in the next monsoon session.

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