Cabinet clears Electricity Bill

The Cabinet on Wednesday cleared the amended Electricity Bill 2001 that aimed to create a competitive framework for growth of the power sector. The Cabinet also cleared the amended tobacco Bill that would lay down norms for discouraging use of tobacco products.

Briefing reporters after the meeting, Union Health and Parliamentary Affairs Minister Sushma Swaraj said the two Bills would be introduced in the current session of Parliament. She refused to give details saying the Bills had to be first distributed among the members.

The proposed legislation seeks to delicense generation and permit captive power plants. It also provides for private participation in the transmission sector and open access to the grid infrastructure.

Ongoing power projects, like Dabhol and Hirma, which are stuck for lack of adequate payment security mechanism, can find new buyers once the law comes into effect.

The Electricity Bill was introduced in the Lok Sabha on August 30, 2001 and had been referred to the standing committee on energy. The committee suggested many changes keeping in mind opposition from different states and stakeholders in the power sector.

The Bill aims to replace three existing legislations -- the Indian Electricity Act (1910), the Electricity (Supply) Act (1948) and the Electricity Regulatory Commission Act (1998).