Power sector- Budget cheers up big players, but not the consumer. Dr D Shina,
Sree Narayana Guru College of Legal Studies, Kollam
It is now well accepted that power sector is trailing far behind industrial and financial growth of the country for a number of years now. The post Electricity Act 2003 period witnessed an effort to distance the Government from the most vital infrastructure of the country, the power. Though no other goals of the new Act were achieved the finance ministers of the union government as well as state governments made it a point not to give any appreciable allocation to the power sector. The interim budget presented before the parliament by the then finance minister Mr. P Chidambaram also made no effort to deviate from the orientation followed for years in spite of clear indications of its failure. When Modi government took over new expectation bloomed in the industrial circles on rejuvenation of power sector. The initial statements by the PM and others which announced efforts for swift growth of economy were more than enough to kindle the hopes further. The budget was much vocal to the importance of power sector. But that was all, the Finance Minister Mr. Arun Jaitely made no serious efforts to identify the real reasons of the failure of the growth of power sector but blindly followed the policies followed by the previous government, and listened only to the demands of big industrialists playing in the sector. It is true that many from the industrial world have welcomed the budget as a sign of revival of the sector. However failure to identify some very weak links and to give an equitable allocation among generation, transmission and distribution sectors would retain many problems in field unsolved. Though the budget proposals were readily welcomed by big players in the industry, there are not many reasons for general consumers to cheer up as bringing down the ever inflating price of electricity was not all aimed. 10 year tax holiday...
Please join StudyMode to read the full document