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Power Ministry may drop plans to clip regulators' wings

Our Bureau

New Delhi , Sept 12

THE Power Ministry is likely to drop its plans to clip the powers of regulators in the proposed amendments to the Electricity Act.

The Union Power Minister, Mr P.M. Sayeed, today said the proposed amendments to the Electricity Act have been shortlisted, while clarifying that the amendments have "nothing to do with the powers of the regulators."

"We have shortlisted the amendments through interaction with various allies including the Left parties," he told reporters on the sidelines of International Conference on Lighting Technology.

On the issue of the objections raised by the regulators on the proposed changes, he said "there is no controversy on this... it (the new amendments) has nothing to do with regulators." The amendments are likely to be passed in the next session of Parliament, he added.

The Power Ministry had earlier initiated a move to introduce changes to the Act, including a proposal to make it mandatory for regulators to abide by Government policy while setting tariff.

The Ministry had planned to introduce changes in Sections 61, 66, 73, 75, 79 of the Electricity Act 2003 and replace the words "to be guided by" Government Policy, as provided in the Act on the issue of the working of the regulatory establishment, with "shall act in conformity with" Government policies. This would have made it binding for the regulators to act according to the policies framed by the Power Ministry.

The move faced opposition from several quarters, including from within the Government and its Left allies, on grounds that the amendments would curtail the independence and autonomy of the regulatory establishment in the power sector.

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