Why Protect Monopoly In Power Distribution, Union Minister Asks Mamata Banerjee

Why Protect Monopoly In Power Distribution, Union Minister Asks Mamata Banerjee

Why Protect Monopoly In Power Distribution, Union Minister Asks Mamata Banerjee

The invoice offers for de-licensing the facility distribution enterprise within the nation. (File)

New Delhi:

Power Minister RK Singh has written to West Bengal Chief Minister Mamata Banerjee, elevating doubts over her intentions in opposing the Electricity (Amendment) Bill, 2021 and requested why she needs to guard non-public monopoly in electrical energy distribution, particularly in Kolkata.

Last month, Ms Banerjee reportedly wrote a letter to Prime Minister Narendra Modi, protesting the federal government’s plan to introduce the Electricity (Amendment) Bill, 2021 in Parliament within the Monsoon session regardless of reservations raised by the states.

She had known as the brand new amendments “anti-people”.

The invoice was listed for introduction within the latest Monsoon session, however was not launched in Parliament.

In his letter to Ms Banerjee this week, Mr Singh said, “…the non-public distribution firm in Kolkata has one of many highest tariffs within the nation and is a monopoly. If the proposed amendments occurs that firm will face competitors. Why you wish to defend this non-public firm from competitors isn’t clear.”

The invoice offers for de-licensing the facility distribution enterprise within the nation. Once the invoice turns into a legislation, energy distribution can be de-licensed and shoppers can have an possibility to decide on energy provide service suppliers, similar to they do within the telecom sector.

The invoice is meant to finish non-public in addition to authorities monopoly within the energy distribution sector.

The minister additionally defined within the letter that different provisions like cross-subsidies shall be relevant after the implementation of the proposed invoice.

He additional stated multiple service supplier for electrical energy provide in a single space isn’t one thing which is new, as it’s already the case in Mumbai.

Mr Singh additionally identified that the billing effectivity of West Bengal State Electricity Distribution Company is just 81.43 per cent, in comparison with the nationwide common of 85.36 per cent, and the combination technical and industrial losses stand at 20.40 per cent.

The regulatory belongings of West Bengal State Electricity Distribution Company are Rs 15,519 crore, and if this burden is added, the tariff shall be even larger.

Speaking on the difficulty final month, Mr Singh had stated, “Licence raj has to go, in order that buyers can come on this sector. If no funding comes, then we’re in darkness.”

He had additionally stated the fastened price for energy distribution firms can be protected, and there can be a ceiling tariff to guard the curiosity of shoppers.

(Except for the headline, this story has not been edited by NDTV workers and is revealed from a syndicated feed.)

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