Question : CENTRE FLEEING STATES ON POWER TARIFFS



(a) whether attention of the Government has been drawn to the news item captioned, `Centre fleeing States on power tariffs` appearing in the Indian Express dated June 30, 2001;

(b) if so, whether several State Governments have objected to the Union Government`s claim of outstanding dues;

(c) if so, the details thereof;

(d) whether the Government propose to bring uniformity in power tariffs throughout the country; and

(e) if so, the details thereof?

Answer given by the minister

THE MINISTER OF STATE IN THE MINISTRY OF POWER ( SHRIMATI JAYAWANTI MEHTA )

(a) to (c) : Yes, Sir. Chief Minister, Rajasthan in his letter of June, 2001 wrote to the Minister of Power suggesting a review of the principles of tariff fixation of the Central Power Utilities. This issues was also mentioned in CM, MP`s letter of June, 2001 addressed to Minister of Power and CM, Karnataka`s letter of June, 2001. Following the submission of the report of the Expert Group to suggest one-time settlement of outstanding dues of the SEBs to CPSUs, the High Level Empowered Group consisting of Finance Minister, Dy. Chairman, Planning Commission, Minister of Power and CMs of some States met on 26.6.2001 and 6.7.2001. Among other decisions the Empowered Group also recommended that the Committee on Tariff Policy set up under Special Secretary (Power) may be broad based to include representatives of the States/SEBs and the Committee asked to expedite its recommendations.

(d) & (e) : At present fixation of tariffs within States is done either by State Electricity Regulatory Commission (wherever they have been set up) or by the concerned SEBs/States. Tariff setting for central generation utilities is done by the Central Electricity Regulatory Commission.