Proposed electricity Bill, 2020 against basic principle of federalism: SAD

The proposed Electricity (Amendment) Bill, 2020 had become a cause of public concern because it impinged on the right of the states and was "against" the basic principle of federalism as enshrined in the Constitution, Badal said in a statement issued here. He said in case the Bill is passed, many ongoing welfare schemes which provide subsidized power or free power to different sections of society would be adversely affected.

Shiromani Akali Dal (SAD) chief Sukhbir Singh Badal on Wednesday said the proposed Electricity (Amendment) Bill, 2020 was "against" the basic principle of federalism and sought its withdrawal from Prime Minister Narendra Modi. Badal said the proposed Bill prohibits states from giving subsidies and cross subsidies which was a "direct attack" on the constitutional right of the state governments to help vulnerable sections of society.

In a letter to the prime minister, the SAD chief urged Modi to direct the Power minister not to pursue the proposed Bill and to withdraw the same to ensure the federal rights of the states are not compromised in any manner. The proposed Electricity (Amendment) Bill, 2020 had become a cause of public concern because it impinged on the right of the states and was "against" the basic principle of federalism as enshrined in the Constitution, Badal said in a statement issued here.

He said in case the Bill is passed, many ongoing welfare schemes which provide subsidized power or free power to different sections of society would be adversely affected. "Besides causing administrative problems, the Bill also has the propensity to cause social unrest once it divests subsidized and free power from various sections of society including Scheduled Castes, underprivileged sections and farmers," he said.

Badal said consumers would also "face the brunt" in case the Bill was passed in its present form. As per the clauses of the Bill, he pointed out, the states would have to deposit payment for purchase of power in advance following which power would be given to the buyer.

"This is likely to cause great hardship to states which are revenue deficient besides resulting in the burden being passed on to the consumer," the SAD president said. "The Bill, if passed in its present form, will take away the power of the state governments to appoint chairman and members of the State Electricity Regulatory Commissions," he said.

He also said how the proposed Bill would also "adversely affect" the distribution and transmission companies established by various states as per their respective Electricity Acts. He said the Bill proposed to give power to the generation companies to appoint their own distribution and transmission franchisees without taking any permission from the State regulatory authorities.