'Cabinet note on Electricity Act, tariff policy in a month'

Amendments to the Electricity Act and to the National Tariff Policy are two issues on which the Power Ministry will approach the Cabinet in a month's time.
Power Minister Jyotiraditya Scindia today said: "For heralding reforms in the power sector we are proposing changes in the Electricity Act, 2003 and National Tariff Policy for which we will be approaching the Cabinet in the next 3-4 weeks."
Addressing a press conference, Scindia said the Power Ministry will leave no stone unturned to achieve these goals soon.
As part of the amendment to the Electricity Act, 2003, the Ministry of Power aims at segregating carriage and content in power distribution.

Under the separate carriage and content model, one company would be owning the network while electricity supply would be done by different entities.
Similar business models are already in place in some countries, including the United Kingdom.

At present in India, power discoms supply as well as manage network that provides electricity for residential and commercial purposes.
Scindia said that as part of the proposed changes to the National Tariff Policy, the ministry is also looking at extending Section 62 beyond the 12th plan period (2012-17) by keeping the hydro projects under the section which is a cost plus structure.

In the cost plus structure, the electricity tariff from the plant increases if there is rise in input cost.
He added that the hydro power has the maximum amount of potential in the country almost about 1,50,000 MW but we have exploited a little over 39,000 MW, we have a long way to go.
Power Ministry is also in discussions with the CWC (Central Water Commission), Ministry of Water Resources and DONER (Ministry of Development of North Eastern Region) to set up a special EGoM for hydro projects in the North-east area.
"The attempt is to fast track projects not only with regards to the project development but also the infrastructure that surrounds the area i.E. Roads, airports, telecom facilities etc," Scindia added.