PERFORMANCE BUDGET 1998-99 - Ministry of Power
PERFORMANCE BUDGET 1998-99 - Ministry of Power
PERFORMANCE BUDGET 1998-99 - Ministry of Power
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Orissa is the first State which has set up Electricity Regulatory Commission in the<br />
State for rationalisation <strong>of</strong> tariffs and matters related thereto. Haryana has also taken<br />
steps to set up Electricity Regulatory Commission in the State and in this regard Haryana<br />
Electricity Reforms Act has come into existence w.e.f. 10.3.<strong>1<strong>99</strong>8</strong>. The Rajasthan Reform<br />
Bill is yet to be passed by the State Assembly. The other States viz. Andhra Pradesh,<br />
Gujarat, Karnataka, Madhya Pradesh and Goa have also drafted their Reform Bills<br />
which are under finalisation. The States which are at different stages <strong>of</strong> reforms and<br />
restructuring are Uttar Pradesh, Maharashtra, Bihar and Assam.<br />
The Government <strong>of</strong> India have promulgated an Ordinance “The Electricity Regulatory<br />
Commission Ordinance, <strong>1<strong>99</strong>8</strong>” on 25.4.<strong>1<strong>99</strong>8</strong> for establishment <strong>of</strong> Central Electricity<br />
Regulatory Commission (CERC) and State Electricity Regulatory Commissions<br />
(SERCs) at National level and in the States respectively for rationalisation <strong>of</strong> tariffs<br />
and matters related thereto. As per the Ordinance, the CERC and SERCs have to be set<br />
up within a period <strong>of</strong> 3 months from the date <strong>of</strong> it’s promulgation. Necessary action has<br />
been initiated for setting up <strong>of</strong> the CERC. Copies <strong>of</strong> the Ordinance have been circulated<br />
to all the State Governments with the request to take necessary steps for constitution <strong>of</strong><br />
the Electricity Regulatory Commission in their States within the prescribed period.<br />
15.2 To initiate the process <strong>of</strong> private sector participation in distribution:<br />
The Single Member Committee <strong>of</strong> Shri S.J. Coelho appointed by Government <strong>of</strong> India<br />
to make recommendations on the legal/administrative/financial framework relating to<br />
private sector participation has submitted its final report on 6.3.<strong>1<strong>99</strong>8</strong>. A copy <strong>of</strong> the<br />
report has been sent to all State Governments.<br />
The report provides an excellent insight into the current scenario and the problems<br />
facing the electricity sector in India. Distribution <strong>of</strong> electricity being an area <strong>of</strong> major<br />
concern today, the Committee has dwelt at length on this issue and has suggested various<br />
ways and means to improve the situation.<br />
15.3 The Central Government would make a comprehensive review <strong>of</strong> the role <strong>of</strong> CEA Technoeconomic<br />
approval <strong>of</strong> competitively bid power projects will be simplified and CEA shall not<br />
be concerned with capacity cost, tariff and other commercial aspects <strong>of</strong> the project. <strong>Power</strong><br />
regarding approval <strong>of</strong> projects shall stand delegated to the states in respect <strong>of</strong> power projects<br />
upto 250 MW. However, for projects above 250 MW, CEA appraisal would continue in<br />
respect <strong>of</strong> planning and other related matters.<br />
The question <strong>of</strong> amending the existing Acts, notifications and rules to make competitive<br />
bidding procedure simpler is being examined in consultation with CEA. With the setting<br />
up <strong>of</strong> the CERC, the tariff function will be performed by the Commission. The changed<br />
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