VOICE
OF ELECTRICITY WORKERS
Oct-Dec 2001
Vol 2 No.4 Index
EXCERPTS FROM A CRITIQUE OF THE ELECTRICITY
BILL-2001
ELECTRICITY BILL – 2001 DESIGNED
FOR PRIVATE INVESTMENT
Wish list of the Independent Power Producer and Distributor
Considering the value of the assets of the State Electricity Boards
(SEBs) it is meaningless to argue that domestic capital would be
able to take over their assets or make any meaningful investments
for the growth of the industry except with funds from the public
financial institutions. Now, if you were a Multinational Corporation
(with or without an Indian front) interested in investing in (read
taking over assets) the Indian power sector what would be your wish
list (or charter of demands)? A typical wish list
1. Complete freedom to invest in generation, regardless of its impact
on the national economy and resources, that includes any size, fuel,
equipment, location, type of generation (base or peak load), capital
cost, foreign exchange implications and etc. A transmission and/or
distribution licence that can be operated directly or through another
person (in other words sold). No licence for a distributor who wants
to trade in electricity and/or generate and distribute in rural
areas.
2. Tariff’s based on commercial principles that recover the
cost of electricity and eliminate subsidies and cross subsidies.
3. The loss making rural areas must be removed and handed over to
who so ever it may concern – Panchayats, NGOs, co-operatives
or whatever – in short just get rid of the rural areas.
4. A security deposit that covers the cost incurred in providing
the supply ( any electrical lines or electrical plant) as well as
dues in respect of the electrical supply. After a period of 15 days
notice, the right to cut off the power supply due to non-payment.
In case of a disputed bill right to cut off supply unless an amount
equivalent to the sum claimed is deposited as a security deposit
‘under protest”.
5. Generators or traders should be free to supply to any consumer
anywhere.
6. The Central Electrical Authority reduced to an Authority only
in name.
7. The Regulatory Commissions should work within the framework laid
down by the Central Government in matters of policy and tariff,
and with an appellant commission to keep the Commissions in check.
8. Load dispatch centers (eventually to be under a private control)
whose directives can be violated since the penalty for doing so
is a trivial amount.
9. Assets of the Electricity Board should statutorily be sold on
the basis of their revenue potential (irrespective or their market
worth). Such transaction should be binding on all persons with or
without third party consent.
10. Employees should deem to have been transferred without any recourse
to the Industrial disputes Act 1947 or any other law for the time
being in force.
11. The role of the legislature should be reduced to that of a listening
post.
12. Every institution built over the last fifty year under the existing
laws should be restructured to meet the above demands.
13. All executive power should be vested with a few bureaucrats
located in the Power Ministry in Delhi.
The Electricity Bill –2001 not only fulfils all these wishes
but also provides much more. Section 165 state,” Any amount
payable by a person under the Act, if not paid, may be recovered
as if its were an arrear of land revenue” The Bill assures
foreign investors that the most pernicious instrument of colonial
subjugation would be used for the recolonisation of India.
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