Power reforms in offing, sales tax Bill to be tabled

The Cabinet today approved amendments to the Electricity Act, 2003, to gradually reduce cross-subsidy. The amendments will also empower the police to investigate power theft cases under the Code of Criminal Procedure Act.

The amendments will also specify that rural electrification is the joint responsibility of the Centre and states. "There were some gray areas in law which we are trying to remove," a power ministry official said. Demands from the Left parties necessitated the amendment to the clause governing elimination of cross-subsidies. The Cabinet also approved the introduction of the Essential Commodities (Amendment) Bill, 2005 in Parliament during the current session.

The Bill seeks to reduce the number of essential commodities from 15 to seven or eight. The list would only include foodgrain and petroleum products, senior government officials said. Also, new commodities will be added to the list only in case of an emergency.

"The idea is to allow freer movement of goods and reduce controls. Foodgrain will continue to be governed by the law as there is a scope for diversion of subsidised commodities sold through the public distribution system into the open markets. Similarly, there is a scope for adulteration of petroleum products which can be curbed through this," said an official.