The Union government may be forced to bring about some changes in the Regulatory Commissions Ordinance, specially in the section pertaining to agricultural tariffs whereby there would not be any time-frame for states to increase their agricultural power tariff.
Sources said that a final decision on this would be taken by the BJP think-tank and the PMO.
These crucial changes could be made in section 29 of the ordinance before the Bill, which is currently being finalised, is placed in Parliament.
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The sources said the government was considering this change after some states had not accepted the condition of implementing the minimum farm tariff within a three-year time-frame.
Once these changes are made, sources said "the Bill would not be as effective as was required."
States like Tamil Nadu and Punjab have strongly opposed this clause as it would be completely in variance with their policy for farm power tariffs. Currently, there is no agricultural tariff in these states.
If the Bill is introduced in its present form, state governments would have to make hefty increases in the agricultural tariff within that specified time-frame. The price would have to be at least 50 per cent of the average cost of generation and supply.
It was expected that the hike would be in the range of Rs 1-1.50 per unit in certain states and even more in others.
State governments have expressed that this sort of tariff increase, specially in the agricultural sector might not be feasible.
In addition, the section where the amendments are likely to made also specifies that the state government should adequately compensate the board if it subsidises any section of consumers.
The ordinance, however, specifies that there would be no time gap for consumers (other than in agriculture) and they would have to pay at least 50 per cent of the average cost.
The ordinance, however, specifies that there would be no time gap for the other consumers (other than agriculture) and pay at least 50 per cent of the average cost.
The ordinance for the creation of the Regulatory Commissions had been cleared last month, which made it necessary for the Centre to create the Central Electricity Regulatory Commission and State Electricity Regulatory Commission within three months.