labels: economy - general, power, union budget 2003
Legal framework for power sectornews
Our Economy Bureau
01 March 2003
New Delhi: A bill to provide a legal framework for the reform and restructuring of the power sector is likely to be placed in Parliament soon, says Finance Minister Jaswant Singh.

The Electricity Bill, 2001, was introduced in the Lok Sabha in August 2001 and subsequently referred to the Standing Committee on Energy for examination. The report of this committee has been received, Singh adds.

To encourage further capacity addition in the sector, the budget has proposed the further liberalisation of the mega power project policy by extending its benefits to any power project that fulfils the conditions already prescribed for mega power projects.

In 1999, the government had notified 18 power projects as mega projects, conferring upon them various duty-and-licensing benefits.

Given the importance of transmission in the power sector, the budget has also proposed a cut in the customs duty on specific equipment for high-voltage transmission projects from 25 per cent to 5 per cent.

Singh has also proposed an allocation of Rs 20 crore to the Council for Scientific and Industrial Research (CSIR) to further research in solar energy, wind turbines, and hydrogen fuel as alternatives to fossil fuels, and for launching incentive-driven research in these three fields.


 search domain-b
Legal framework for power sector