The central notification which gave permission to the distribution corporations to extend the electrical energy charges each month is a preparation for the entire privatization of the power distribution sector. Much like the telecom sector, the electrical energy distribution sector can be into account of the Parliament Standing Committee on the Electricity Modification Invoice, which goals to tax the massive monopolies. The transfer is to enact the invoice within the present 12 months itself.
In many of the states together with Kerala, electrical energy provide is beneath public sector management. Distribution has been privatized in few states and Union Territories like Gujarat, Odisha and Delhi. Earlier than the invoice grew to become a legislation, month-to-month fee hikes have been allowed with the intention of constructing the distribution sector engaging. The invoice has a provision to permit multiple electrical energy distribution license in the identical sector. Present electrical energy distribution community (posts, strains and so forth.) can be utilized by new licensees. Ambani, Adani and Tata monopolies are within the energy provide sector.
As it’s central to grant license to multiple state, states can’t intervene. This can pave the best way for the collapse of the general public sector in energy provide, much like the telecom sector.
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