Power Ministry to move SC against Andhra HC order
The power ministry will approach the Supreme Court against an order of the Andhra Pradesh High Court which said the Centre is not empowered to issue directions to restrict states from buying electricity from the spot market even if the distribution companies fail to maintain bank guarantees in favour of power plants.
The ministry proposes to introduce a bill in Parliament in the Budget session proposing amendments to the Electricity Act, 2003 to decentralise power distribution business. Besides, the Centre proposes a clause in the bill to restrict electricity despatch to discoms from power plants in favour of which the utilities have not opened bank guarantees. This is being done to avoid further piling up of discom payables to generation companies.
A senior government official said the Union power ministry will soon approach the Supreme Court against the high court directive. “The Andhra Pradesh High Court has examined executive orders and that also we are going to challenge in the Supreme Court,” the official said on condition of anonymity, adding that the order will not have any impact on the introduction of Electricity Act Amendment Bill in the Budget session.
Government data showed that discoms’ overdue amount till January stood at Rs 1,25,478 crore. The ministry also proposes to confer more powers to the National Load Despatch Centre to ensure grid security.
