Centre moves to cut BEST’s power in Mumbai

Written By Unknown on Rabu, 08 Januari 2014 | 22.23

MUMBAI: The BEST may soon lose its power supply monopoly in the island city. The Union power ministry is likely to issue a cabinet note to amend two sections of the Electricity Act, 2003, to provide "open access and multiple licensing for power distribution" in the island city, highly placed government sources said.

The move will not only end BEST's cross-subsidies for island city consumers and its transport wing, but could soon put the loss-making undertaking out of business.

BEST general manager Om Prakash Gupta has been asked by the power ministry to file his reaction to the proposed amendment. "I have sent a letter to the power ministry opposing any such move. If the two sections of the Act are amended, it will be detrimental for BEST and its customers in both the power and transport divisions.

"It is a question of our existence. If our high-end consumers migrate, we will not be able to cross-subsidise lower-rung consumers. Also, we will not be able to subsidise the transport wing which means the bus transport system in Mumbai will be jeopardised," he said.

If the Act is amended, BEST will not be able to stop other discoms from poaching on its consumer base from Colaba/Cuffe Parade to Mahim/Sion. It could lead to large-scale migration of high-end consumers to other discoms, thereby affecting its subsidy regime.

At Tuesday's committee meeting, the GM, in an emotional appeal to panel members, sought help from every political party to "save the BEST from the present crisis". "I appeal to every committee member to take up the matter with Union ministers and senior MPs from their respective parties and thwart any such plan at the Centre," he said at the meeting. "There is no reason for the ministry to amend the sections. The Electricity Act, which was passed by Parliament after several rounds of debate and discussions in 2003, has given us powers to be the "local authority" for distributing power in the island city. Also, it allows us to cross-subsidise the transport department — which plays an important role of ferrying 40 lakh commuters in 4,200 buses across Mumbai, Thane, Navi Mumbai and Mira-Road," Gupta said.

All members assured that they would take up the matter with Union ministers and MPs from Mumbai. "There was a similar move in the past, but we had challenged it in the Supreme Court, which ruled in our favour. But it seems the Centre now wants to amend the Act to facilitate the entry of private power players in the island city. We will strongly oppose it," said Sena member Sunil Ganacharya.

South Mumbai MP Milind Deora told TOI, "I would like to meet BEST officials and my party workers (on the panel) and study the issue. I am ready to represent anything that is in the larger interests of south Mumbai residents."


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