NEW DELHI, March 30: Power minister Rangarajan Kumaramangalam on Monday ruled out revoking of the provision in the Indian Electricity Act which empowers the government to amend and/or revoke any licence in "public interest", as demanded by certain private companies in the sector.In an interview here, Kumaramangalam said the provision was justified on the grounds that many of those who got licence were not serious about the projects and were hindering the path of other serious companies.
"Why should licence for such companies be continued when they are blocking the chance of genuine ones only because the latter are late comers," he said Certain private companies, including Tata Electric Company, BSES, RPG Goenka's CESC and Noida Power Company in a memorandum to the Union power ministry during the United front (UF) rule in January last had asked for doing away with "discretionary powers" enjoyed by the government under the Act to provide the required comfort level to investors.
The power minister alsoexpressed resentment over the demand of certain promoters of existing projects that show case power projects should not be allowed to hinder their path as the tariff in the latter was lower.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
