 bill no  86 of  2014 the electricity (amendment) bill, 2014 byshri rajiv pratap rudy, mp a billfurther to amend the electricity act, 2003be  it enacted by parliament in the sixty-fifth year of the republic of india as follows:—1  (1) this act may be called the electricity (amendment) act, 2014short title and commencement(2) it shall come into force on such date as the central government may, by notification in the official gazette, appoint36 of 200352 for section 4 of the electricity act, 2003 (hereinafter referred to as the principal act), the following section shall be substituted, namely:—substitution of new section for section 410"4 (1) the central government shall, after consultation with the state governments, prepare and notify a national policy, permitting stand alone systems (including those based on renewable sources of energy and other non-conventional sources of energy) for rural areas within six months from the date of coming into force of this actnational policy on stand alone systems for rural areas and nonconventional energy systems(2) the central government and the concerned state governments shall jointly create necessary infrastructure in rural areas to harness solar power and other forms of renewable energy to ensure access to electricity to every rural household by the year 2020"5amendment of section 63 in section 6 of the principal act, for the words "electrification of households" the words "electrification of households by the year 2020" shall be substituted4 after section 6 of the principal act, the following section shall be inserted, namely:—insertion of new section 6a10"6a (1)the central government shall, in consultation with the state governments, as soon as possible but not later than six months from the date of coming into force of this act, prepare and notify a national policy aimed at encouraging the use of renewable sources of energy to ensure electrification in rural and urban areasnational policy on promotion of use of renewable sources of energy(2) the central government shall, by notification in the official gazette, constitute a fund to—15(i) ensure availability of financial resources for the promotion and use of renewable sources of energy;(ii) promote research and innovation in the use of renewable sources of energy;(iii) provide incentives like subsidies or financial assistance to persons who opt for use of non-renewable energy; and20(iv) provide incentives for setting up of small scale industry based on solar energy (3) the central government shall, in consultation with the state governments and the appropriate commission, set the target to be achieved by the states regarding use of renewable sources of energy in generation of electricity"25 statement of objects and reasonsthe electricity act, 2003, seeks to provide, inter alia, for generation, transmission, distribution, trading and use of electricity to all areas the act was further amended in 2007 to give effect to certain changes that were considered necessaryas per census 2011 figures, close to 45 per cent of rural india lack access to electricityhence, it becomes essential to formulate a time bound dynamic national policy permitting stand along systems for the use of renewable sources of energythe census further indicates that 43 per cent of india's rural households continue to depend on kerosene for lighting the usage of kerosene for domestic heating and lighting leads to respiratory diseases and impaired eyesight therefore, in order to harness a clean, cost-effective and safe source of energy,  necessary programmes are required to be framed and implemented in rural areas by the state governments concernedsection 6 of the parent act provides that the concerned state governments and the central government shall jointly endeavour to provide access to electricity to all areas including villages and hamlets through rural electricity infrastructure and electrification of households however, more than 33 per cent of indian households are still have no access to electricity moreover, even in cities, households suffer on account of shortage of power therefore, a time-frame to ensure that 400 million people get access to electricity and the mechanism adopted by the central and the state governments to resolve these issues is vitalindia is already the fourth largest energy consumer in the world the indian economy is fast growing but, millions of households in the country still lack sufficient energy access increasing dependence on oil imports for meeting the country's rising energy needs is becoming a major concern for india's energy security in light of the above factors, equal stress needs to be put on utilization of the renewable energy sources for generating power in the country this requires substantial amount of scaling up of renewable energy systems, in addition to conventional systems to cater to needs of different economic and social segmentshence this billnew delhi;rajiv pratap rudyjune 30, 2014 financial memorandumclause 2 of the bill provides for creation of necessary infrastructure to harness solar power and other sources of renewable energy to ensure electrification to rural households by the year 2020 clause 4 provides for preparation of a national policy aimed at encouraging the use of renewable sources of energy to ensure electrification in rural and urban areas and constitution of a fund in this regardthe bill, therefore, if enacted, would involve expenditure from the consolidated fund of india it is likely to involve a recurring expenditure of about rupees ten thousand crore per annuma non-recurring expenditure of about rupees  two thousand crore is also likely to be involved annexure extract from the electricity act, 2003 (36 of 2003)     4 the central government shall, after consultation with the state governments, prepare and notify a national policy, permitting stand alone systems (including those based on renewable sources of energy and non-conventional sources of energy) for rural areas      national policy on stand alone systems for rural areas and non-conventional energy systems6 the concerned state government and the central government shall jointly endeavour to provide access to electricity to all areas including villages and hamlets through rural electricity infrastructure and electrification of households      joint responsibility of state government and central government in rural electrification———— a billfurther to amend the electricity act, 2003————(shri rajiv pratap rudy, mp)gmgipmrnd—1755ls—31072014