Infrastructure regulators to be made answerable to Parliament

Draft Bill proposes licensing powers

To make infrastructure regulators such as the Telecom Regulatory Authority of India (Trai) and Central Electricity Regulatory Commission (CERC) autonomous, the central government has proposed making these directly answerable to Parliament. The government also has plans to grant licensing powers to all regulators in the infrastructure sector, be it electricity, posts, airports or highways.

According to a Cabinet note on the draft regulatory reform Bill, the sector regulators will have to present an annual report to Parliament on their work and will also be legally accountable, empowering any aggrieved party to file an appeal against a regulator’s decision.

The move will bring uniformity in the functioning of the regulators.

Officials said the Cabinet note, floated by the Planning Commission, has proposed fixed four-year tenure for members of the regulators and insulates their selection, appointment and removal from any political or non-political interference.

Officials said the draft Bill bars a member of any regulatory body from seeking re-appointment and also prohibits him/her from taking up any consultancy position or otherwise in any body, organisation or entity under the jurisdiction of the regulator concerned.

“Suppose a person is or has been a member of CERC. He will not seek any appointment in any company related to power within two years after tendering his resignation,” the official explained.

The Bill grants autonomy to all regulators to appoint their staff and even experts without seeking permission from the ministry concerned and also ensures funds are transferred from the Consolidated Fund of India.

“To ensure financial autonomy, once approved, the entire budgetary allocation will have to be transferred by the ministry concerned to the regulator to ensure its financial autonomy,” the draft Bill said.

The basic function of all regulators will be to protect the interests of all consumers by ensuring quality of service and lowering of costs, promote competition, encourage market development and benchmark the licences granted by it or by any other with international standards.