Tamil Nadu CM Expresses Concern With the Proposed Amendments in Electricity Act

In a letter to the Union Power Minister, R.K. Singh, the Chief Minister of Tamil Nadu, Edapaddi K Palaniswamy, has underlined several concerns relating to the proposed amendment to the Electricity Act, seeking center’s intervention.

In April this year, the Ministry of Power (MoP) issued a draft proposal for the amendment of the Electricity Act 2003 to address contract enforcement, renewable purchase obligations (RPO), among other vital issues. The Ministry had invited comments, suggestions, and objections from stakeholders. Read about the crucial amendments that have been proposed here.

In the letter, Palaniswamy noted that the proposed privatization of distribution networks will adversely affect distribution companies (DISCOMs) and will lead to massive losses for the DISCOMs.

“Allowing private franchisees or sublicensee would only lead to cherry picking of remunerative areas by the franchisee or the sub-distribution licensee affecting the DISCOMs directly.

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