The bill provides for de-licensing the power distribution business in the country. (File)
Power Minister R K Singh has written to West Bengal Chief Minister Mamata Banerjee, raising doubts over her intentions in opposing the Electricity (Amendment) Bill, 2021 and asked why she wants to protect private monopoly in electricity distribution, especially in Kolkata.
Last month, Ms Banerjee reportedly wrote a letter to Prime Minister Narendra Modi, protesting the government's plan to introduce the Electricity (Amendment) Bill, 2021 in Parliament in the Monsoon session despite reservations raised by the states.
She had called the new amendments "anti-people".
The bill was listed for introduction in the recent Monsoon session, but was not introduced in Parliament.
In his letter to Ms Banerjee this week, Mr Singh stated, "...the private distribution company in Kolkata has one of the highest tariffs in the country and is a monopoly. If the proposed amendments happens that company will face competition. Why you want to protect this private company from competition is not clear."
The bill provides for de-licensing the power distribution business in the country. Once the bill becomes a law, power distribution would be de-licensed and consumers will have an option to choose power supply service providers, just like they do in the telecom sector.
The bill is intended to end private as well as government monopoly in the power distribution sector.
The minister also explained in the letter that other provisions like cross-subsidies will be applicable after the implementation of the proposed bill.
He further said more than one service provider for electricity supply in one area is not something which is new, as it is already the case in Mumbai.
Mr Singh also pointed out that the billing efficiency of West Bengal State Electricity Distribution Company is only 81.43 per cent, compared to the national average of 85.36 per cent, and the aggregate technical and commercial losses stand at 20.40 per cent.
The regulatory assets of West Bengal State Electricity Distribution Company are Rs 15,519 crore, and if this burden is added, the tariff will be even higher.
Speaking on the issue last month, Mr Singh had said, "Licence raj has to go, so that investors can come in this sector. If no investment comes, then we are in darkness."
He had also said the fixed cost for power distribution companies would be protected, and there would be a ceiling tariff to protect the interest of consumers.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)