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Power tariff policy draft to be placed before Cabinet

Our Bureau


Mr P.M. Sayeed

New Delhi , June 22

THE Power Ministry is planning to take the long-pending tariff policy for Cabinet approval over the next few weeks.

"We have concluded the wide-ranging deliberations regarding the provisions of the Policy with all stakeholders and a final draft is now ready. The Ministry would take the proposal for Cabinet approval over the next few weeks," the Power Minister, Mr P.M. Sayeed, said here.

On the issue of several States doling out of free power to farmers, Mr Sayeed has said power distribution was a State subject and it was up to political parties in the States to decide whether or not to provide free electricity to certain sections of the society.

"Political parties in power have to keep in mind various aspirations of the people and formulate policies accordingly. Even in the case of free power, they can decide to adopt strategies to assist various sections of the society," he said while addressing a press conference after inaugurating the Bhakra Beas Management Board's (BBMB) National Hydel Training Centre.

He, however, said that the Electricity Act 2003 provides the freedom to State Governments to give relief to any section of the society, provided they compensate for it.

"States that choose to provide free power would have to provide for the subsidy to the utility concerned," Mr Sayeed said.

On the issue of unbundling of state electricity boards too, he said: "We have already given six month extension to the states and we should not forget that India has a federal democratic structure. If such a need arises, we will see what can be done." Calling for the need for exploiting hydel potential in the country, he said: "India is blessed with an estimated hydel potential of about 1,50,000 MW. Out of this, less than 20 per cent of hydro power has been harnessed so far." Mr Sayeed also asked the State Governments of Punjab, Haryana, Himachal Pradesh and Rajasthan to gainfully utilise the resources of BBMB to the full potential of the project.

The Minister said the major constraints in taking up new hydro projects have been lack of reliable hydrological and geological data, extent of time and money required for survey, investigation and preparation of a detailed project reports, inaccessible and remote sites, problems of land acquisition, resettlement and rehabilitation, environment and wildlife issues, he said.

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