Why does Mamata Banerjee want to protect electricity distribution monoply: Union Minister R K Singh

Aug 09, 2021

New Delhi [India], August 9 : Hitting out at West Bengal Chief Minister Mamata Banerjee for opposing the Electricity (Amendment) Bill, 2021, Union Power Minister RK Singh on Monday asked why the Trinamool Congress chief wants to protect the monopoly in the power distribution sector.
"Why does she want to protect the monopoly in the power distribution sector, especially when Kolkata has one of the highest electricity tariffs in the country?" he asked.
The Bill is intended to end private as well as government monopoly in the power distribution sector by de-licensing the segment, Singh claimed.
The Union Minister said that he would soon write to address the concerns raised by Banerjee. He has planned to write such letters to the governments of West Bengal as well as Kerala to explain to them about the salient features of the Bill and its benefits for ordinary consumers.
"Once the Bill becomes a law, consumers will have an option to choose the power supply service providers just like they have in the telecom sector," Singh said.
"License Raj has to go so that investors can come in this sector. If no investment comes, then we are in darkness," he added.
The Power Minister also assured that there will be provisions in the new bill to fix costs for power distribution companies that would be protected.
"There would be a ceiling tariff to protect the interest of the consumers. The draft bill will have a provision where two or more distribution companies are registered to operate in the same area and the State Commission shall fix the ceiling tariff suo moto after calling for requisite information from the distribution companies," he said.
Singh added that the government has prepared the draft of the bill after an in-depth consultation with the stakeholders and added that the new bill will be very different from the current bill.
Last week, Mamata Banerjee had reportedly written a letter to Prime Minister Narendra Modi and had protested against the Centre's plan to introduce the Electricity (Amendment) Bill, 2021, in the ongoing monsoon session of the Parliament, despite reservations raised by the states.
The Kerala Assembly had also unanimously passed a resolution demanding the Centre to withdraw the Electricity (Amendment) Bill, 2021.