The government will place the uniform electricity tariff policy before the cabinet in March, after sorting out some contentious issues with the Left parties.
"The Left has raised certain concerns over the proposed tariff policy. We will hold a fresh round of talks with them before the policy is placed before the cabinet," power minister P. M. Sayeed said here today.

The government will also set up an appellate tribunal for electricity, which will take care of the problems of regulatory commissions. The chairman and members of the tribunal have been selected and will be appointed this month.

The Left parties have raised questions on the power of regulatory commissions, cross-subsidy and rural electrification. The government has already brought in four amendments to the Electricity Act. The Left parties had been demanding them.

The power minister said states have some reservations regarding the commissions since they feel that these bodies have been given unlimited power on tariff fixation.

The government has, therefore, decided to bring in uniformity in tariff fixation. The Central Electricity Regulatory Commission will come out with a uniform tariff policy. State power regulators will have to abide by them while fixing tariffs.

Similarly, the issue of cross-subsidy will also be taken care of in the tariff policy. Union power secretary R. V. Shahi said the government aims to reduce cross-subsidy gradually. It will, however, be continued for lifeline consumption.

The Left parties have expressed certain concerns over the rural electrification programme, added Shahi. They feel that the Centre is trying to pass the implementation of the rural electrification programme to the states.

Sayeed assured that the Centre will provide financial support in terms of capital subsidy to the states for rural electrification.

"The role of Rural Electrification Corporation, which now provides funds only, will be strengthened. It will also be involved in the implementation of the rural electrification programme," the minister said. This issue, too, will be addressed in the tariff policy.

www.telegraphindia.com News Date : 13-Feb-2005