The Power Ministry will approach the Union Cabinet within a month with amendments to the Electricity Act and to the National Tariff Policy to unleash next generation of reforms in the power sector.
Addressing press conference here, Minister of State for Power, Jyotiraditya Scindia said for unleashing new generation of reforms in the power sector, the Power Ministry is proposing changes in the Electricity Act, 2003 and National Tariff Policy for which it will approach the Cabinet in the next 3-4 weeks. As part of the amendment to the Electricity Act, 2003, the Ministry of Power aims at segregating carriage and content in power distribution.
Under the separate carriage and content model, one company would be own the network while electricity supply would be done by different entities. At present in India, power discoms supply as well as manage network that provides electricity for residential and commercial purposes.
Mr. Scindia said that as part of the proposed changes to the National Tariff Policy, the Power Ministry is also looking at extending Section 62 beyond the 12th plan period (2012-17) by keeping the hydro projects under the section which is a cost plus structure. In the cost plus structure, the electricity tariff from the plant increases if there is rise in input cost. “Hydro power has maximum amount of potential in the country almost about 1,50,000 MW but we have exploited a little over 39,000 MW, we have a long way to go,’’ he remarked.
