1. LEGAL FRAMEWORK, POLICIES AND REGULATIONS AND ORGANIZATIONAL SET UP IN INDIA -Dr. Aditi Raja Director, Finance, KPTCL 5.7.2011

2. CONSTITUTION OF INDIA ARTICLE 246(2) ARTICLE 246(2) LIST 3 OF SEVENTH SCHEDULE LIST 3 OF SEVENTH SCHEDULE CONCURRENT SUBJECT CONCURRENT SUBJECT CENTRAL GOVERNMENT HAS PRE- EMPTIVE POWERS IN CASE OF A CONFLICT CENTRAL GOVERNMENT HAS PRE- EMPTIVE POWERS IN CASE OF A CONFLICT

3. EARLY LEGISLATION INDIAN ELECTRICTY ACT, 1910 INDIAN ELECTRICTY ACT, 1910 ELECTRICITY SUPPLY ACT,1948 ELECTRICITY SUPPLY ACT,1948 AMENDMENTS TO THESE ACTS AMENDMENTS TO THESE ACTS

4. EARLY ORGANIZATIONAL LOGIC ELECTRICITY IS A NATURAL MONOPOLY ELECTRICITY IS A NATURAL MONOPOLY VERTICAL INTEGRATION OF THE SECTOR ESSENTIAL VERTICAL INTEGRATION OF THE SECTOR ESSENTIAL CO-ORDINATION REQUIRED THROUGH A STRONG BODY CO-ORDINATION REQUIRED THROUGH A STRONG BODY ECONOMIES OF SCALE TO BE CAPTURED ECONOMIES OF SCALE TO BE CAPTURED PUBLIC OWNERSHIP BEST PUBLIC OWNERSHIP BEST

5. MODIFIED ORGANIZATIONAL LOGIC SCALE ECONOMIES NO LONGER REQUIRED SCALE ECONOMIES NO LONGER REQUIRED CO-ORDINATION CAN BE BETTER DONE BY THE MARKET CO-ORDINATION CAN BE BETTER DONE BY THE MARKET REGULATION SHOULD BE THROUGH PERFORMANCE INCENTIVES REGULATION SHOULD BE THROUGH PERFORMANCE INCENTIVES EFFICIENT CONSUMPTION WILL BE PROMOTED AUTOMATICALLY EFFICIENT CONSUMPTION WILL BE PROMOTED AUTOMATICALLY PUBLIC, PRIVATE AND PUBLIC-PRIVATE OWNERSHIP POSSIBLE PUBLIC, PRIVATE AND PUBLIC-PRIVATE OWNERSHIP POSSIBLE

6. STEPS FOR FURTHER LEGISLATION GOVERNMENT OF INDIA RESOLUTION- POLICY ON PRIVATE PARTICIPATION IN THE POWER SECTOR, 1991 GOVERNMENT OF INDIA RESOLUTION- POLICY ON PRIVATE PARTICIPATION IN THE POWER SECTOR, 1991 MEGA POWER POLICY,1995 MEGA POWER POLICY,1995 COMMON MINIMUM NATIONAL ACTION PLAN FOR POWER,1997 COMMON MINIMUM NATIONAL ACTION PLAN FOR POWER,1997

7. IN THE CENTRE CENTRAL GOVERNMENT OVERALL POLICY MAKER FOR THE COUNTRY CENTRAL GOVERNMENT OVERALL POLICY MAKER FOR THE COUNTRY MINISTRY OF POWER AT THE HELM OF AFFAIRS MINISTRY OF POWER AT THE HELM OF AFFAIRS EXISTENCE OF A CENTRAL ELECTRICITY AUTHORITY EXISTENCE OF A CENTRAL ELECTRICITY AUTHORITY LARGE FINANCIAL INSTITUTIONS AT THE CENTRE LARGE FINANCIAL INSTITUTIONS AT THE CENTRE LARGE GENERATION AND TRANSMISSION BODIES LARGE GENERATION AND TRANSMISSION BODIES

8. IN THE STATES MONOLITHIC UTILITIES BROKEN DOWN MONOLITHIC UTILITIES BROKEN DOWN DEGREE OF AUTONOMY VARIES DEGREE OF AUTONOMY VARIES PRIVATE SECTOR VERY ACTIVE PRIVATE SECTOR VERY ACTIVE LOAD DESPATCH CENTRES DEVELOPED AS INDEPENDENT UNITS LOAD DESPATCH CENTRES DEVELOPED AS INDEPENDENT UNITS

9. EVEN BEFORE THE ELECTRICITY ACT FORMALLY CAME INTO EXISTENCE……. EVEN BEFORE THE ELECTRICITY ACT FORMALLY CAME INTO EXISTENCE…….

10. STEPS TOWARDS RESTRUCTURING OF EXISTING UTILITIES DE-INTEGRATE SEBs INTO GENERATION, TRANSMISSION AND DISTRIBUTION DE-INTEGRATE SEBs INTO GENERATION, TRANSMISSION AND DISTRIBUTION FURTHER DE-INTEGRATE EACH OF THESE UNITS FURTHER DE-INTEGRATE EACH OF THESE UNITS OWNERSHIP TO BE MODIFIED OWNERSHIP TO BE MODIFIED REGULATION TO BE INTRODUCED AS A SURROGATE FOR COMPETITION REGULATION TO BE INTRODUCED AS A SURROGATE FOR COMPETITION

11. ELECTRICITY ACT, 2003 COMPETITION IS THE BUZZ WORD COMPETITION IS THE BUZZ WORD OPEN ACCESS OPEN ACCESS INDEPENDENT LOAD DESPATCH CENTRES INDEPENDENT LOAD DESPATCH CENTRES PRIVATE TRANSMISSION LICENSEES PRIVATE TRANSMISSION LICENSEES EMPAHSIS ON RURAL ELECTRIFICATION EMPAHSIS ON RURAL ELECTRIFICATION DECENTRALIZED MANAGEMENT OF DISTRIBUTION DECENTRALIZED MANAGEMENT OF DISTRIBUTION ATTENTION TO EFFICIENCY ATTENTION TO EFFICIENCY THEFT TO BE CURTAILED THEFT TO BE CURTAILED

12. LEGISLATION ELECTRICITY ACT,2003 ELECTRICITY ACT,2003 -NATIONAL ELECTRICITY POLICY -NATIONAL TARIFF POLICY -RURAL ELECTRIFICATION POLICY -GUIDELINES AND REGULATIONS CAN BE ISSUED BY THE CERC AND STATE ERCs

13. RELEVANT PROVISIONS SEC 11-IN CONJUNCTION WITH SEC 40c SEC 11-IN CONJUNCTION WITH SEC 40c SEC 39-TRANSMISSION AGENCY SHOULD NOT TRADE SEC 39-TRANSMISSION AGENCY SHOULD NOT TRADE SEC 65-SUBSIDY SEC 65-SUBSIDY SEC 135- THEFT OF ELECTRICITY SEC 135- THEFT OF ELECTRICITY SEC 150-ABETMENT SEC 150-ABETMENT SEC 178-IN CONJUCTION WITH SEC 28(4) SEC 178-IN CONJUCTION WITH SEC 28(4)

14. LOAD DESPATCH CENTRES SEC 26 FOR SETTING UP LDC AT CENTRE. SEC 26 FOR SETTING UP LDC AT CENTRE. SEC 27 FOR SETTING UP REGIONAL LDCs. SEC 27 FOR SETTING UP REGIONAL LDCs. SEC 28 FUNCTIONS OF REGIONAL LAOD DESPATCH CENTRES ( SUB-SEC 4 OF PARTICULAR IMPORTANCE) SEC 28 FUNCTIONS OF REGIONAL LAOD DESPATCH CENTRES ( SUB-SEC 4 OF PARTICULAR IMPORTANCE) SEC 31 LDCs IN THE STATEs SEC 31 LDCs IN THE STATEs SEC 32 FUNCTIONS OF LDC IN THE STATEs SEC 32 FUNCTIONS OF LDC IN THE STATEs

15. NATIONAL ELECTRICITY POLICY ACCESS TO ELECTRICITY TO ALL HOUSEHOLDS ACCESS TO ELECTRICITY TO ALL HOUSEHOLDS AVAILABILITY OF POWER FOR PEAK LOADS AVAILABILITY OF POWER FOR PEAK LOADS ENHANCING PER CAPITA AVAILABILITY ENHANCING PER CAPITA AVAILABILITY FINANCIAL TURNAROUND OF THE SECTOR FINANCIAL TURNAROUND OF THE SECTOR CONSUMER INTERESTS TO BE PROTECTED CONSUMER INTERESTS TO BE PROTECTED RURAL ELECTRIFICATION IMPORTANT RURAL ELECTRIFICATION IMPORTANT ENERGY CONSERVATION ENERGY CONSERVATION INDEPENDENCE OF LOAD DESPATCH CENTRES INDEPENDENCE OF LOAD DESPATCH CENTRES

16. INDEPENDENCE OF LOAD DESPATCH CENTRES RING FENCING OF THE LDCs RING FENCING OF THE LDCs INDEPENDENCE TO LDCs INDEPENDENCE TO LDCs CREATION OF NATIONAL LOAD DESPATCH CENTRE CREATION OF NATIONAL LOAD DESPATCH CENTRE FORMATION OF POSOCO (POWER OPERATION SYSTEM COMPANY) FORMATION OF POSOCO (POWER OPERATION SYSTEM COMPANY)

17. BIRTH OF POSOCO RLDCs AND SLDCs WERE SET UP UNDER THE UNIFIED LOAD DESPATCH AND COMMUNICATIONS PROJECT. RLDCs AND SLDCs WERE SET UP UNDER THE UNIFIED LOAD DESPATCH AND COMMUNICATIONS PROJECT. NATIONAL LOAD DESPATCH CENTRE (NLDC) CONSTITUTED IN 2009 NATIONAL LOAD DESPATCH CENTRE (NLDC) CONSTITUTED IN 2009 POSOCO CREATED BY MERGING NLDC WITH THE RLDCs in March 2010 POSOCO CREATED BY MERGING NLDC WITH THE RLDCs in March 2010 CERC REGULATORY COMMISSION (FEES AND CHARGES OF REGIONAL DESPATCH CENTRE AND OTHER RELATED MATTERS) REGULATIONS, 2009. CERC REGULATORY COMMISSION (FEES AND CHARGES OF REGIONAL DESPATCH CENTRE AND OTHER RELATED MATTERS) REGULATIONS, 2009.

18. NATIONAL TARIFF POLICY EMPAHSIS ON COMPETITION EMPAHSIS ON COMPETITION PROMOTE INVESTMENT IN THE SECTOR PROMOTE INVESTMENT IN THE SECTOR CAPTIVE GENERATION TO BE ENCOURAGED CAPTIVE GENERATION TO BE ENCOURAGED MULTI YEAR TARIFF MULTI YEAR TARIFF TWO PART TARIFF TWO PART TARIFF ALL POWER PURCHASE COSTS TO BE LEGITIMATE ALL POWER PURCHASE COSTS TO BE LEGITIMATE OPEN ACCESS OPEN ACCESS CDM BENEFITS TO BE TAKEN CDM BENEFITS TO BE TAKEN

19. RURAL ELECTRICFICATION POLICY COMMON MINIMUM PROGRAMME COMMON MINIMUM PROGRAMME LAUNCH OF RAJIV GANDHI VIDYUTIKARAN YOJNA LAUNCH OF RAJIV GANDHI VIDYUTIKARAN YOJNA CREATION OF REDB, VEI AND DDB CREATION OF REDB, VEI AND DDB LOCAL INVOLVEMENT IN RURAL ELECTRIFICATION TO BE ENCOURAGED LOCAL INVOLVEMENT IN RURAL ELECTRIFICATION TO BE ENCOURAGED

20. REGULATIONS SEC 178 OF ELECTRICITY ACT PERMITS CERC TO ISSUE REGULATIONS SEC 178 OF ELECTRICITY ACT PERMITS CERC TO ISSUE REGULATIONS SEC 181 OF ELECTRICITY ACT PERMITS STATE ERCs TO ISSUE REGULATIONS SEC 181 OF ELECTRICITY ACT PERMITS STATE ERCs TO ISSUE REGULATIONS SEC 110-APPELLATE TRIBUNAL FOR ELECTRICITY SEC 110-APPELLATE TRIBUNAL FOR ELECTRICITY

21. THANK YOU THANK YOU

22. Doubts! Doubts!