The Power Ministry is drafting the State Electricity Distribution Responsibility Bill that would prescribe guidelines to maintain the financial health of the Discoms.

“We are preparing a State Electricity Distribution Responsibility Bill,’’ Power Secretary P. Uma Shankar said at an industry seminar organised by Assocham.

Uma Shankar said that the proposed Bill is part of the distribution utilities’ restructuring package.

“There will be a State Electricity Distribution Responsibility Bill which will be drafted by the Ministry of Power and would be sent to the States for enactment, we are working on that,” he told mediapersons.

The Government has floated a re-structuring package for sick Discoms. The scheme is open till December 31.

COAL POOL PRICING

“We are in discussions with the Coal Ministry, let’s see what comes out of it,” said the Power Secretary.

He reiterated that domestic coal output needs to be ramped up not only by Coal India but also by the private companies that have been allocated captive mines.

Between 2009 and 2012, coal-based power generation capacity has increased by 52 per cent, while domestic coal production has seen 17 per cent growth. This has widened the gap between demand and supply forcing power stations to scout for coal abroad.

Siddhartha.s@thehindu.co.in

(This article was published on December 5, 2012)
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