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Electricity Act-2003 - A legislation to invite the power sector disarray to dangerous levels
By Er. BS Meel
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Although many states and Canadian provinces have pulled back from restructuring following the California crisis, but the Ministry of Power, GOI is in a hurry to enact the new EB-2001 to cover up the violation of E(S) Act 1948. When president issued an ordinance to support Orissa SEBs unbundling effective from 1.4.1996; the country was told by the ministries that it represents model of power sector reforms. Today everyone admits that Orissa reforms failed. Now they say we have learned the lesson and EB-2003 is the solution.

Our economy cannot bear the cost of experimentation with new legislation. Reforms are being pursued for last 12 years. More funds and time is being demanded time and again to bring success, but success is still elusive.

The attitude of IAS cadre and Ministries; doesn't show concern for public good. In the appointments to the chairman CERC and SERC under ERA-1998; and appointment of chairman CEA (1998-2002) law and natural justice were violated. The Chairman of search committees to select chairpersons of SERC(Rajasthan) and SERC (Karnataka) selected themselves as chairpersons of SERC (Rajasthan) & SERC (Karnataka) respectively. In another case, post of chairman CERC was illegally kept vacant for more than 6 months (above 1 year)and the convener of the selection committee (IAS officer) himself was appointed chairman CERC. In another case, an officer who was not a Member of CEA, on 1st July 2002 was appointed Member of CEA and chairmen CEA at the same time and date, thus circumventing the law. The new chairman CEA, so appointed, reversed the advice of CEA on the proposed Electricity Act -2003 in an illegal manner. The question is whether those responsible, for providing social and economic justice to people have the freedom to misuse authority?

A Joint secretary (Dist) in MOP assisted by seven PSUs/societies of Govt. who have no experience in Distribution System-Management are controlling the Funds; and thrust on SEBs to serve as Adviser Cum Consultants to SEBs/State Utilities. The specification of equipment's to be purchased and turnkey contract for execution of works are also being thrust by ACCs on SEBs. It is worth mentioning that in Karnataka conversion of Rate Contracts to Turnkey contract increased the price in Three Distribution circles by 30 to 40%.

So the Act is framed without proper evaluation and as stated above without using the available expertise in the country and many people are allowed to misuse their authority.

Therefore this Act is an unwanted legislation.

The above is the collective opinion of the experts in the field.



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