The resolution passed in the Kerala assembly states that the amendment would facilitate free entry of private players into the power sector and help give control entirely to the Union government.
Kerala Assembly
The Kerala Assembly on Thursday passed an unanimous resolution urging the Union government to withdraw its Electricity Amendment Bill, 2021, saying it would facilitate free entry of private players into the sector and help vest its entire control with the Union government. The resolution also stated that the right to take decisions would also lie entirely with the Union government if the amendment is passed. Setting aside their political differences, the ruling CPI(M)-led Left Democratic Front (LDF) and opposition Congress-led United Democratic Front (UDF) joined hands in the House to pass the resolution and press the BJP-led NDA government at the Union government to withdraw the Bill. Moving the resolution, Minister for Power, K Krishnankutty said that though generally, the Union government used to intervene in the power sector, the matter of power distribution had always been handled by the states. "Despite privatisation pressures, the right of the states to take decisions had always remained protected. However, the new Electricity Amendment Bill proposes to take away all such rights of the states and vest the entire control of the power sector with the Centre," he said. The Union government had failed to arrive at a consensus with the states over the issue, the minister alleged. Alleging that the Bill would undermine the federal principles of the country, the resolution also alleged that it would pave the way for the destruction of the power sector in the country and deny electricity to common persons. "Grabbing the rights of the states in taking decisions regarding the power sector will weaken the fundamentals of the federal structure," stated the resolution. One of the major proposals in the new amendment was the non-requirement of license to operate in the power sector. The resolution moved in the Kerala Assembly added that this would facilitate the easy entry of private companies into the sector, with the state government or the state Electricity Regulatory Commission having no control over them. As per the amendment bill, the Union government would decide the eligibility criteria for such private players, cited the resolution. The resolution also pointed out that as per the amendment, private companies which foray into the sector will have no obligation to invest in anything including in laying of new electricity lines. It also warned that this would lead to complete 'uncertainty' in the power distribution sector. Even after the amendment, the responsibility to construct new power lines and its maintenance would remain with the public sector utilities only, the resolution added. It also expressed strong reservation about the proposal giving power to the Union government control over activities of the state Electricity Regulatory Commissions. Read: One nation, many governments: Why India must embrace federalism
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