the law relating to generation, transmission, distribution, trading and use of electricity is contained in the electricity act, 2003 the act has been reviewed by the government as per the commitment made by it in the national common minimum programme and in view of the concern expressed by a number of states it is proposed to amend the act to give effect to certain changes as have been considered necessary 2 section 6 of the act provides that the appropriate government shall endeavour to supply electricity to aff areas including villages and hamlets there has been a concern that the onus of rural electrification has been put only on the state governments [t is proposed to amend section 6 so as to provide 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 3 sections 38, 39, 40, 42, 61, 178 and 181 of the act, infer alia, provide for reduction and 'elimination' of cross subsidies here have been a concern that though the crosssubsidies may be reduced but elimination of such subsidies may not be feasible for the present it is, therefore, proposed to amend the said sections so as to do away with the 'elimination' of cross-subsidies however, reduction of cross subsidies wil! continue 4 as per the provisions contained in section 151 of the act, the offences relating to theft of electricity, electric lines and interference with meters are congnizable offences concems have been expressed that the present formulation of section 151 stands as a barrier to investigation of these congnizable offences by the police it is proposed to amend section 15) so as to clarify the position that the police would be able to investigate the cognizable offences under the act to expedite the trial before the special courts, it is also proposed to provide that a special court shall be competent to take cognizance of an offence without the accused being committed to it for trial 5 the bill seeks to achieve the above objects new dewy; priyaranjan dasmunsi the 20th december, 2005clause 2 of the bill seeks to substitute section 6 of the electricity act, 2003 relating to obligations of appropriate government to supply electricity to rural areas the proposed new section 6 seeks to provide that 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 2 the bill, therefore, if enacted and brought into operation would involve expenditure from the consolidated fund of india it has been estimated that the rajiv gandhi grameen vidyutikaran yojana (with an outlay of rs 16,225 crore) would have a subsidy component of rs 14,750 crore to be funded from the consolidated fund of india in two phases phase-! of this scheme has begun from the financial year 2005-2006 with a sanction of rs 5000 crore of subsidy from the consolidated fund of india 3 it is estimated that no other expenditure, both recurring or non-recurring nature from the consolidated find of india, would be involved     obi gations & the appropriate government shali endeavour to supply electricity to all areas io supply including villages and hamlets electercrly to      rural areas 38 (7)      central (2) the functions of the central transmission utility shall be— transmission unity and funchions      (d) to provide non-discriminatory open access to its transmission system for use by-- (4) any licensee or generating company on payment of the transmission charges, or (ii) any consumer as and when such open access is provided by the state commission under sub-section (2) of section 42, on payment of the transmission charges and a surcharge thereon, as may be specifted by the central commission: provided that such surcharge shall be utilised for the purpose of meeting the requirement of current level cross-subsidy: provided fusther that such surcharge and cross subsidies shall be progressively reduced and eliminated in the manner as may be specified by the central commission: provided also that such surcharge may be jevied till such time the cross subsidies are not eliminated provided also that the manner of payment and utilisation of the surcharge shall be specified by the central commission: provided also thai such surcharge shall not be leviable in case open access is provided toa person who has established a captive generating plant for carrying the electricity to the destination of his own use state prarsmis- 39 (1)    ' ' (2) the functions of the state transmission utility shall be —- sien unahty and funchons   «   (@) to provide non-discriminatory open access to its transmission system for use oy -- (2) any jicensee cr generating company on payment of the transmission charges; or gf) any consumer as and when such open access is provided by the state commission under sub-section {2} of section 42, on payment of the transmission charges and a surcharge thercon, a8 may be specified by the state commission' provided thaf such surcharge shall be utilised for the purpose of meeting the requirement of current level vross-subsidy:provided further that such surcharge and cross subsidies shall be progressively reduced and eliminated in the manner as may be specified by the state commission: provided aise that such surcharge may be levied till such time the cross subsidies are not eliminated: provided also that the manner of pay ment and utilisation of the surcharge shall be specizied by the state commission: provided also that such surcharge shall not be teviable in case open access is provided tu 4 persen who has established a apuve generating plant for cacrying die eleciricily tu the westination of hes wisn nse 9 ui shali be the gut, of 2 iramsneissic re dee ea duties of te) to build reas  hanirie sto: "and operate we eis era, co-vidinated and economical hecens ec sor inga suan tar yeni dow eta, as the case may be; tiled stade transi logon « (pyiocompl: walter daections et oop esa lant despaicn centre and the ud qaad duspite  re gs the ease ron 4 lobe previer aa rp biatgs epee 7 dy ensemission system for use i ay (aii; pos ou 4 or pene uh oe on pe cin of the transmission hobos) vt (ipa oo vaevis amare they cooker st wooo is nrovided by the state cotimissien taba pe-scade ql le satine cit lontofthe iransmission wharges adc ued theta goma, be sue liad be ine siate commission' proviled that sack surcharge shail be udivsed for the purpose of meeting hie requirement ov cement levet cicse-tubs as: provided fursher that such strchaige vmd cnoce subsidies shall be rropiessively reduced and elimina eq in the manne: as muy be specified by the appropiiat: € orinission: provided also that such surenares moat be levies lm) such time the cross subsidies are not eliminated: prowviile' oy that the manne: cf payment enc ehlisgden of the surcharge shall be speciiicd by the approarrete coneaisoa provide wise thet such surchaoe 47 yc be sesru ie incase open access iy provide toe poruos whe hat este list ae capiws peooratine plant for carrying: the eleciriciy tic centioation cf las own bse = ed 1m py %  part vi chstribution of plectrictt®provestons wid respecs bo cbse ibetian fievacees ep sy? £ & + t duties of distribution (2: uh, stat, commisake shall introduce ¢ pea side i such phases and subject io licenser and eo bicsudiivons, gircluding the cross subsidies anc edie i operatione! constrainis) as may be pen access vee fied within one yea ofc appointed de tr ba il and in seecifving the extent of open noress in successive phaser amd in determining the charges f ° ling, it shall have due aoa toallrebevant facto « inching such cross subsidies gad otite: operational constraints:provided that such open access may be allowed before the cross subsidies are eliminated on payment of a surcharge in addition to the charges for wheeling as may be determined by the state commission: provided further that such surcharge shall be utilised to meet the requirements of current level of cross-subsidy within the area of supply of the distribution licensee: provided also that such surcharge and cross subsidies shall be progressively reduced and eliminated in the manner as may be specified by the state commission: provided also that such surcharge shall not be leviable in case open access is provided to a person who has established a captive generating plant for carrying the electricity to the destination of his own use: 36 of 2003provided also that the state commission shail, not later than five years from the date of commencement of the electricity (amendment) act, 2003, by regulations, provide such open access to all consumers who require a supply of electricity where the maximum power to be made available at any time exceeds one megawatt       part vii tariff61 the appropriate commission shail, subject to the provisions of this act, specify tariff regulations the terms and conditions for the determination of tariff, and in doing so, shall be guided by the following, namely:— |     |     |     |     |     ||------|------|------|------|------|(g) that the tariff progressively reflects the cost of supply of electricity and aiso, reduces and eliminates cross subsidies within the period to be specified by the appropriate commission; |     |     |     |     |     ||------|------|------|------|------|cognizance of offences 151 no court shall take cognizance of an offence punishable under this act except upon a complaint in writing made by appropriate government or appropriate commission or any of their officer authorised by them or a chief electrical inspector or an electrical inspector or licensee or the generating company, as the case may be, for this purpose |           |     ||------------|------|| directions | by   || 176       |      || (1)        |      ||           |      ||           |      ||           |      ||           |      || '          |      || state      |      || goverment |      |(2) in particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely: - |     |     |     |     |     ||------|------|------|------|------|(6) the additional requirements (including the capital adequacy, credit worthiness or code of conduct) under sixth proviso to section 14;      178 (1)      (2) in particular and without prejudice to the generality of the power contained powers of authority to make regulations in sub-section (/), such regulations may provide for all or any of the following matters, namely: —-      (4) reduction and elimination of surcharge and cross subsidies under second proviso to sub-clause (ii) of clause (d) of sub-section (2) of section 38;      (m) reduction and elimination of surcharge and cross subsidies under the second proviso to sub-clause (//) of clause (c} of section 40;      (r) the period within which the cross subsidies shall be reduced and eliminated under clause (g) of section 61;   "   powers 181 (1)     ' of central comumssion (2) in particular and without prejudice to the generality of the power contained in subsection (7), such regulations may provide for all or any of the following matters, namely:— to make regulations    ax (/) reduction and elimination of surcharge and cross subsidies under second proviso to sub-clause (i/} of clause (¢) of sub-section (2) of section 39; |     |     |     |     |     ||------|------|------|------|------|(m) reduction and elimination of surcharge and cross subsidies under second proviso to sub-clause (ii) of clause (c) of section 40; |     |     |     |     |     ||------|------|------|------|------|{p} reduction and elimination of surcharge and cross subsidies under the third proviso to sub-section (2) of section 42; |     |     |     |     |     ||------|------|------|------|------|(zc) the terms and conditions for the determination of tariff under section 61; 