X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Draft Power Bill 2000 to wind up SEBs - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Feb 25, 2000

    Draft Power Bill 2000 to wind up SEBs

    The draft power bill 2000 proposed by the Power ministry will make its compulsory for states to wind up their electricity boards in their existing form within six months of this bill getting passed. This bill would replace all existing legislations in the power industry.

    The states would have to split up their SEBs (State Electricity Boards) into three separate corporations. Also the existing licensees BSES, CESC and Tata Electric Companies would be allowed to operate under the old law for a period of one year after which they would operate under the new laws laid down. Another feature of the draft is that the Central and State regulatory commissions would be supreme authorities. This would reduce the Central Electricity Authority's functions as the power to grant authorisation would largely lie with the Central and State commissions. The Central commission would be responsible for framing overall guidelines relating to tariffs and also regulate inter-state tariffs while the State commissions would be responsible for the intra-state tariffs. The state commissions would be the agency to give permission to entities for generation as well as supply of electricity in the state.

    The draft also proposes a cess of 2 paise per unit of electricity generated by any entity which would go into a central pool. These funds would be used for the development of non-fossil fuel based sources of power generation.

    States that have been proactive towards unbundling of their SEBs and have taken measures to divide these functions into separate corporations are UP and Orissa. Other state governments who are finalising plans of splitting the functions of SEBs are Gujarat and Maharashtra. On the licensee front no clear details have been spelled out for the new regulations as reported in the newspapers. However the power licensees feel that the government should introduce the licensee concept for cities and towns, just as is being practised in Mumbai by TEC/BSES. In the case of the IPP (Independent power producers) the returns could be higher for a company but it has to face the financial risk of the SEB as power produced by them has to be supplied to the SEB. In the case of licensee there is no such requirement of supplying to the SEB. An area is earmarked for the licensee and they can directly distribute power to the end user in this area. Supplying power to SEB is perceived to be risky as most of these are in poor financial condition.

    Though power reforms are moving slowly, atleast the power ministry efforts are towards privatisation. Earlier the industry suffered from delays in projects, corruption and many bureaucratic hitches This bill when passed would make norms in the power sector much more attractive for private participation. This would increase the interest levels of foreign and private power companies towards the power sector.

     

     

    Equitymaster requests your view! Post a comment on "Draft Power Bill 2000 to wind up SEBs". Click here!

      
     

    More Views on News

    NTPC: Higher Tax Provision Impacts Profits (Quarterly Results Update - Detailed)

    Mar 30, 2017

    NTPC declared results for the quarter ended December 2016. The company reported revenue growth of 10.9% while profits declined by 7.5% YoY.

    NTPC: Capacity Addition a Key to Earnings Going Ahead (Quarterly Results Update - Detailed)

    Nov 23, 2016

    NTPC declared results for the quarter ended September 2016. Here is our analysis of the results.

    Power Grid: Robust Performance Continues (Quarterly Results Update - Detailed)

    Nov 23, 2016

    Power Grid Corp (PGCIL) declared its results for the quarter ended September 2016. The company reported a revenue and profit growth of 28% YoY and 32% YoY respectively.

    Power Grid: Steady Start to the Year (Quarterly Results Update - Detailed)

    Sep 29, 2016

    Power Grid Corp (PGCIL) declared its results for the quarter ended June 2016. The company reported a revenue and profit growth of 31% YoY and 35% YoY respectively.

    NTPC: Good Start to the Year (Quarterly Results Update - Detailed)

    Sep 29, 2016

    NTPC declared results for the quarter ended June 2016. Here is our analysis of the results.

    More Views on News

    Most Popular

    This Small Cap Can Drive Chinese Players Out of India (and Make a Fortune in the Process)(The 5 Minute Wrapup)

    Aug 17, 2017

    A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.

    The Most Important Innovation in Finance Since Gold Coins(Vivek Kaul's Diary)

    Aug 10, 2017

    Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    S&P BSE POWER


    Aug 22, 2017 (Close)

    COMPARE COMPANY

    MARKET STATS