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The Union Power Minister Shri P.M. Sayeed today held over a three hours discussion with the Left leaders Shri A.B. Bardhan and Shri E. Balanandan and Members of some Trade Unions in a bid to avert a nation wide strike called by the electricity unions for May 31.
During the meeting, which was a follow up of earlier meetings of 21st December, 2004 and 2nd May, 2005, the earlier demand of the Left for review of the Electricity Act was narrowed down to four issues, viz. (i) unbundling of the State Electricity Boards (ii) Central Government’s role in rural electrification to address the issue of urban-rural divide. (iii) The need for elimination of cross subsidy to be reviewed, and (iv) Extension of date of reorganization of SEBs.
In the earlier meetings the Minister of Power had indicated to the Left parties the following:
1. Government would consider taking suitable steps to address the concerns regarding the provision of elimination of cross-subsidies in the Act though in the opinion of the Government this issue has already been adequately addressed in the Electricity Policy.
2. With launching of the Rajiv Gandhi Grameen Vidutikaran Yojana for fulfillment of the NCMP objectives of rural electrification and giving access to electricity to all the rural households within five years, the Central Government for the first time had taken on direct responsibility for seeing that this basic need of rural India is fulfilled with 90% capital subsidy from the Central Government. The Government would also take care of the concerns regarding the misperceptions about the creation of an urban-rural divide in the Act.
3. Regarding the provision of reorganization of SEBs in the Act. The Government felt that there was no need for a review of the provisions in this regard.
4. As far as extension of the date of reorganization of SEBs beyond 9th June, 2005, the Government had indicated that they would examine the matter .
Only one issue relating to reorganisation of SEBs was left to be addressed.
During today’s meeting Mr. A.B. Bardhan again said that Government was yet to address the concerns regarding extension of date of reorganization of SEBs beyond 9th June, 2005 as well as the issue of reorganization of SEB itself.
After a detailed discussion it was agreed by the Minster of Power that implementation of the provision of Section 172 (a) of the Electricity Act relating to unbundling will be extended for a period of 6 months. The Government shall continue the process of review of the provisions related to reorganization/restructuring of SEBs in the Electricity Act, 2003 based on the status and impact of its implementation so far.
EK/CKB
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