Cabinet Note Regarding Changes in Tariff Policy Soon:Scindia - The New Indian Express

Cabinet Note Regarding Changes in Tariff Policy Soon:Scindia

Published: 21st December 2013 03:14 PM

Last Updated: 21st December 2013 03:14 PM

Power Minister Jyotiraditya Scindia today said his ministry will circulate two Cabinet notes within a month proposing changes in the Tariff Policy and Electricity Act 2003.

"There will be two separate Cabinet notes, because there are two issues, I am speaking with stakeholders and we are on the last mile and I certainly hope that in a month or so we will be ready on both," he told reporters here.

"The one on the tariff policy will hopefully come earlier," Scindia said.

Stakeholders who have submitted feedback on the topic include Central Electricity Authority ( CEA), Central Electricity Regulatory Commission (CERC), Principal Secretaries of all the state governments and chairpersons of power generation, transmission and distribution utilities.

The government-appointed committee, chaired by Scindia, during its meeting in June this year had deliberated on amendments to the Electricity Act.

According to various sources in the Ministry, one of the suggestions made by the committee is to have a formula which would ensure that variation in fuel and power purchase cost is recovered by the power generating firms.

The advisory group was set up against the backdrop of multiple problems, including acute fuel shortages, hurting power generation in the country.

Members of the group include Tata Group Chairman Cyrus Mistry, Reliance Group Chairman Anil Ambani, SBI Chairman Pratip Chowdhary and ICICI Bank Managing Director Chanda Kochhar.

The Advisory Group is likely to meet next on December 24.

"We are going to discuss transmission and financial issues for the power sector in our next (Advisory Group) meeting," Scindia added.

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