Electricity Act-2003 - Many Hurdles Ahead

April 2005 - June 2005 Index

Editorial

Many Hurdles Ahead

Though an understanding has been reached with the Government on the issues raised by the National Coordination Committee of Electricity Employees and Engineers about the provisions inimical to the interests of the people in the Electricity Act: 2003. After a discussion with Prime Minister and prolonged discussions with the Minister for Power finally on 17^th May’05. The conclusions of the same is reproduced below for ready reference from the letter given by the Hon’ble Power Minister. (Full text of the same is published elsewhere):

1) Government would consider taking suitable steps to address the concerns regarding the provision of elimination of cross-subsidies in the Act though in the opinion of the Government this issue has already been adequately addressed in the Electricity Policy. Suitable amendment in the Act would be considered.

2) Centre’s role in the rural electrification activities would be suitably provided through an Amendment in the Act.

3) In accordance with provision of Section 172(a) of the Electricity Act, the date shall be extended for a period of 6 months beyond 9^th June, 2005.

4) During the next six months, the Government of India shall continue the process of review of the provisions related to reorganisation/restructuring of SEBs in the Electricity Act, 2003 based on the status and impact of its implementation so far.

The points noted above are the issues pertaining to cross-subsidy, rural electrification and restructuring of Electricity Boards based on Section 131 of the Electricity Act:2003. On the first two points government has agreed to bring in the required amendment to the Electricity Act providing for cross subsidies and removing rural-urban divide in the present Act. The third item is the crucial one, on which serious contention between the government and the national coordination committee was there.

The Government’s commitment to review the Electricity Act: 2003 in the National Common Minimum Programme, the left parties proposal for revision of the Electricity Act which covers the issues referred to above. In the discussions we have reminded the above commitment of the government and therefore we were insisting the government to concede the same.

The persistent refusal of the government forced the electricity employees and engineers to give a call for nationwide strike for 48 hours on 31^st May and 1^st of June’05. Nationwide preparation was in a full swing while the final negotiation took place. However since the government have positively responded as indicated above to the issues raised by the electricity employees and engineers, they have decided to withdraw the proposed strike action.

However, the process of review to be undertaken has crucial importance. A dispassionate scientific evaluation of the effect of restructuring is to be undertaken. The social impact of the same also needs very careful analysis since the electricity industry is not only an industry among others but it has the predominant importance as a mother industry that this is the main liver not only for development of industries but also for the total national development including agriculture especially in the present context of global competition.

The pressure on the government from the national and international monopoly capital to get control of this vital industry to amass huge profits in a large country like India should not be forgotten by those who uphold the interests of a nation as a whole beyond the monopoly capitalist profit. Our Electricity industry has developed self-sufficiency and technological competence and competitiveness which has to be promoted carefully. This is the primary responsibility of the central government according to us.

As indicated above since the push and pull of the vested interests are so strong a powerful public pressure is to be brought about to make the government uphold the national interests. This task can only be successfully performed by uniting all the progressive forces in the country especially the Indian peasantry and the working class. The Electricity employees and engineers must take upon themselves the responsibility as front rank fighters in this noble task ignoring the risk whatever it might be.

This is not to belittle the importance of the present understanding reached for which all the stakeholders can take the credit.


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