LEGAL FRAMEWORK, POLICIES AND REGULATIONS AND ORGANIZATIONAL SET UP IN INDIA -Dr. Aditi Raja Director, Finance, KPTCL

CONSTITUTION OF INDIA ARTICLE 246(2) ARTICLE 246(2) LIST 3 OF SEVENTH SCHEDULE LIST 3 OF SEVENTH SCHEDULE CONCURRENT SUBJECT CONCURRENT SUBJECT CENTRAL GOVERNMENT HAS PRE- EMPTIVE POWERS IN CASE OF A CONFLICT CENTRAL GOVERNMENT HAS PRE- EMPTIVE POWERS IN CASE OF A CONFLICT

EARLY LEGISLATION INDIAN ELECTRICTY ACT, 1910 INDIAN ELECTRICTY ACT, 1910 ELECTRICITY SUPPLY ACT,1948 ELECTRICITY SUPPLY ACT,1948 AMENDMENTS TO THESE ACTS AMENDMENTS TO THESE ACTS GOVERNMENT OF INDIA RESOLUTION- POLICY ON PRIVATE PARTICIPATION IN THE POWER SECTOR, 1991 GOVERNMENT OF INDIA RESOLUTION- POLICY ON PRIVATE PARTICIPATION IN THE POWER SECTOR, 1991 COMMON MINIMUM NATIONAL ACTION PLAN FOR POWER,1997 COMMON MINIMUM NATIONAL ACTION PLAN FOR POWER,1997

EARLY ORGANIZATIONAL LOGIC ELECTRICITY IS A NATURAL MONOPOLY ELECTRICITY IS A NATURAL MONOPOLY VERTICAL INTEGRATION OF THE SECTOR ESSENTIAL VERTICAL INTEGRATION OF THE SECTOR ESSENTIAL CO-ORDINATION REQUIRED THROUGH A STRONG BODY CO-ORDINATION REQUIRED THROUGH A STRONG BODY ECONOMIES OF SCALE TO BE CAPTURED ECONOMIES OF SCALE TO BE CAPTURED PUBLIC OWNERSHIP BEST PUBLIC OWNERSHIP BEST

MODIFIED ORGANIZATIONAL LOGIC SCALE ECONOMIES NO LONGER REQUIRED SCALE ECONOMIES NO LONGER REQUIRED CO-ORDINATION CAN BE BETTER DONE BY THE MARKET CO-ORDINATION CAN BE BETTER DONE BY THE MARKET REGULATION SHOULD BE THROUGH PERFORMANCE INCENTIVES REGULATION SHOULD BE THROUGH PERFORMANCE INCENTIVES EFFICIENT CONSUMPTION WILL BE PROMOTED AUTOMATICALLY EFFICIENT CONSUMPTION WILL BE PROMOTED AUTOMATICALLY PUBLIC, PRIVATE AND PUBLIC-PRIVATE OWNERSHIP POSSIBLE PUBLIC, PRIVATE AND PUBLIC-PRIVATE OWNERSHIP POSSIBLE

STEPS TOWARDS RESTRUCTURING OF EXISTING UTILITIES DE-INTEGRATE SEBs INTO GENRATION, TRANSMISSION AND DISTRIBUTION DE-INTEGRATE SEBs INTO GENRATION, TRANSMISSION AND DISTRIBUTION FURTHER DE-INTEGRATE EACH OF THESE UNITS FURTHER DE-INTEGRATE EACH OF THESE UNITS OWNERSHIP TO BE MODIFIED OWNERSHIP TO BE MODIFIED REGULATION TO BE INTRODUCED AS A SURROGATE FOR COMPETITION REGULATION TO BE INTRODUCED AS A SURROGATE FOR COMPETITION

IN THE CENTRE CENTRAL GOVERNMENT OVERALL POLICY MAKER FOR THE COUNTRY CENTRAL GOVERNMENT OVERALL POLICY MAKER FOR THE COUNTRY MINISTRY OF POWER AT THE HELM OF AFFAIRS MINISTRY OF POWER AT THE HELM OF AFFAIRS EXISTENCE OF A CENTRAL ELECTRICITY AUTHORITY EXISTENCE OF A CENTRAL ELECTRICITY AUTHORITY LARGE FINANCIAL INSTITUTIONS AT THE CENTRE LARGE FINANCIAL INSTITUTIONS AT THE CENTRE LARGE GENERATION AND TRANSMISSION BODIES LARGE GENERATION AND TRANSMISSION BODIES

IN THE STATES MONOLITHIC UTILITIES BROKEN DOWN MONOLITHIC UTILITIES BROKEN DOWN DEGREE OF AUTONOMY VARIES DEGREE OF AUTONOMY VARIES PRIVATE SECTOR VERY ACTIVE PRIVATE SECTOR VERY ACTIVE LOAD DESPATCH CENTRES DEVELOPED AS INDEPENDENT UNITS LOAD DESPATCH CENTRES DEVELOPED AS INDEPENDENT UNITS

LEGISLATION ELECTRICITY ACT,2003 ELECTRICITY ACT,2003 -NATIONAL ELECTRICITY POLICY -NATIONAL TARIFF POLICY -RURAL ELECTRCIFICATION POLICY -GUIDELINES AND REGULATIONS CAN BE ISSUED BY THE CERC AND STATE ERCs

ELECTRICITY ACT, 2003 COMPETITION IS THE BUZZ WORD COMPETITION IS THE BUZZ WORD OPEN ACCESS OPEN ACCESS INDEPENDENT LOAD DESPATCH CENTRES INDEPENDENT LOAD DESPATCH CENTRES PRIVATE TRANSMISSION LICENSEES PRIVATE TRANSMISSION LICENSEES EMPAHSIS ON RURAL ELECTRIFICATION EMPAHSIS ON RURAL ELECTRIFICATION DECNTRALIZED MANAGEMENT OF DISTRIBUTION DECNTRALIZED MANAGEMENT OF DISTRIBUTION ATTENTION TO EFFICIENCY ATTENTION TO EFFICIENCY THEFT TO BE CURTAILED THEFT TO BE CURTAILED

RELEVANT PROVISIONS SEC 11 SEC 11 SEC 65-SUBSIDY SEC 65-SUBSIDY TRANSMISSION BEING TRANSMISSION BEING SEC 135- THEFT OF ELECTRICITY SEC 135- THEFT OF ELECTRICITY SEC 150-ABETMENT SEC 150-ABETMENT

NATIONAL ELECTRICITY POLICY ACCESS TO ELECTRICITY TO ALL HOUSEHOLDS ACCESS TO ELECTRICITY TO ALL HOUSEHOLDS AVAILABILITY OF POWER FOR PEAK LOADS AVAILABILITY OF POWER FOR PEAK LOADS ENHANCING PER CAPITA AVAILABILITY ENHANCING PER CAPITA AVAILABILITY FINANCIAL TURNAROUND OF THE SECTOR FINANCIAL TURNAROUND OF THE SECTOR CONSUMER INTERESTS TO BE PROTECTED CONSUMER INTERESTS TO BE PROTECTED RURAL ELECTRIFICATION IMPORTANT RURAL ELECTRIFICATION IMPORTANT ENERGY CONSERVATION ENERGY CONSERVATION INDEPENDENCE OF LOAD DESPATCH CENTRES INDEPENDENCE OF LOAD DESPATCH CENTRES

INDEPENDENCE OF LOAD DESPATCH CENTRES RING FENCING OF THE LDCs RING FENCING OF THE LDCs INDEPENDENCE TO LDCs INDEPENDENCE TO LDCs CREATION OF NATIONAL LOAD DESPATCH CENTRE CREATION OF NATIONAL LOAD DESPATCH CENTRE FORMATION OF POSOCO FORMATION OF POSOCO

NATIONAL TARIFF POLICY EMPAHSIS ON COMPETITION EMPAHSIS ON COMPETITION PROMOTE INVESTMENT IN THE SECTOR PROMOTE INVESTMENT IN THE SECTOR CAPTIVE GENERATION TO BE ENCOURAGED CAPTIVE GENERATION TO BE ENCOURAGED MULTI YEAR TARIFF MULTI YEAR TARIFF TWO PART TARIFF TWO PART TARIFF ALL POWER PURCHASE COSTS TO BE LEGITIMATE ALL POWER PURCHASE COSTS TO BE LEGITIMATE OPEN ACCESS OPEN ACCESS CDM BENEFITS TO BE TAKEN CDM BENEFITS TO BE TAKEN

RURAL ELECTRICFICATION POLICY COMMON MINIMUM PROGRAMME COMMON MINIMUM PROGRAMME LAUNCH OF RAJIV GANDHI VIDYUTIKARAN YOJNA LAUNCH OF RAJIV GANDHI VIDYUTIKARAN YOJNA CREATION OF REDB, VEI AND DDB CREATION OF REDB, VEI AND DDB LOCAL INVOLVEMENT IN RURAL ELECTRIFICATION TO BE ENCOURAGED LOCAL INVOLVEMENT IN RURAL ELECTRIFICATION TO BE ENCOURAGED

REGULATIONS SEC 178 OF ELECTRICITY ACT PERMITS CERC TO ISSUE REGULATIONS SEC 178 OF ELECTRICITY ACT PERMITS CERC TO ISSUE REGULATIONS SEC 181 OF ELECTRICITY ACT PERMITS STATE ERCs TO ISSUE REGULATIONS SEC 181 OF ELECTRICITY ACT PERMITS STATE ERCs TO ISSUE REGULATIONS

THANK YOU THANK YOU

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