Centre defends power tariff policy

Under fire from stakeholders for not having been consulted on the government's Tariff Policy, the power ministry has said it had held "very extensive" consultations with state governments and others during the finalisation of the policy.

In response to Andhra Pradesh Chief Minister Chandrababu Naidu's February 4 letter to Power Minister Anant G Geete alleging lack of adequate consultation on the policy, the power ministry has cited at least three instances of interactions with the state government and State Electricity Regulatory Commission (SERC) representatives between September and December 2003.

The consultation was based on a preliminary discussion paper on the Tariff Policy prepared by the ministry with the assistance of CRISIL, which was circulated in July last year. In August 2003, a high-powered Task Force headed by Planning Commission Member N K Singh was set up to provide suggestions on the draft.