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Govt proposes to impose Rs 1 crore penalty on entities violating Electricity Act

22 Dec 2014 Evaluate

In a bid to make penal provisions more strict in the power sector, the government has proposed penalty of up to Rs 1 crore on entities violating norms under the Electricity Act. The provision is part of various amendments proposed by the government to the Electricity Act, 2003 and would replace the provision in the current Electricity Act where the penalty can be only up to Rs 1 lakh.

The government has introduced the electricity Amendment bill, 2014 in the Lok Sabha  on February 19 and was later referred to the Standing Committee. If the proposed amendment comes into force, violating power sector companies would be liable for punishment that could be imprisonment for three months or fine up to Rs 1 crore. In case of continuing failure, an additional fine would be imposed to around Rs 1 lakh for every day if the failure continues after conviction of the first such offence.

Regarding the renewable energy companies, the bill has notified that in case of violations, the concerned person could face up to three months imprisonment. For the particular generating company, the penalty could extend up to Rs 10 lakh and in case of continued failure to comply with the norms, the fine could be Rs 10,000 per day.

Further, the bill also proposed measures to enhance safety and security of electricity grids, separation of carriage and content in the distribution sector and promotion of renewable energy. The government is of the view that the implementation of proposed provision will promote competition, efficiency in operations and improvement in quality of supply of electricity in the country resulting in capacity addition and ultimate benefit to the consumers.

 

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