The Hindu Business Line : Power tariff policy to be placed before Cabinet next month: Sayeed

THE Union Power Minister, Mr P.M. Sayeed, today said that the tariff policy for the power sector would be placed for Cabinet approval in March following another round of discussion with different stakeholders, especially the Left parties.

The Centre has also finalised the selection process of the Chairman and members of the proposed Appellate Tribunal for Electricity and the appointments would be notified this month.

Addressing mediapersons here today, Mr Sayeed said that the States had reservations about the regulator's power to fix tariffs, issue of cross-subsidy and rural electrification.

The Minister was in the city in connection with the foundation stone laying ceremony of the proposed Unit V and VI of 250 MW each at Mejia thermal power station (MTPS) of Damodar Valley Corporation (DVC).

He had also inaugurated the 210-MW Unit-IV at MTPS today.

While a lot of discussions were already held with the States leading to four amendments in the National Electricity Policy (NEP), the tariff policy will focus on an uniform approach in fixing tariffs by different State regulatory bodies.

"Regulators will not have unlimited powers and will be following a set of guidelines to be fixed by the tariff policy," Mr Sayeed said allaying fears that the State level regulators may end up taking unilateral decisions.

On rural electrification, which has occupied a considerable portion of the Centre-State dialogue so far and is being dealt with both in NEP and the tariff policy, the Minister said that new set of guidelines would be issued underlining the role of States and the Centre.

According to him, unlike the previous efforts, the Centre will play a lead role in not only funding rural electrification projects but also in implementing the same.

"The Rural Electrification Corporation which was so far a funding agency will now take part in project implementation," he said.

On tariff, the people below the poverty line (BPL) will be cross-subsidised at least for next five years.

"We will review the cross-subsidy issue after five years," Mr Sayeed said.

Talking on State Electricity Boards (SEBs), the Minister said that the accumulated losses, which had skyrocketed from roughly Rs 4,500 crore to over Rs 30,000 crore during the 1990s was on the decline for last two years.

On the proposed unbundling of SEBs, he said that none of the States had opposed the need for the same.

However, 13 States had asked for more time. States such as Assam and Gujarat had already issued necessary notifications for unbundling and Maharashtra had firmed up plans for the same.

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