Central government mulling an ordinance to tackle sector issues

The central government is contemplating passing an ordinance to tackle various issues in the power sector. The proposed ordinance would ensure the sanctity of contracts, restrict cross-subsidisation, mandate discoms to pay their dues on time, ensure the independence of regulators, and mandate the fixing of tariffs based on costs. These measures were originally planned as amendments to the Electricity Act, 2003; however, the states have been opposing these for the past three to four years. The ordinance is expected to be notified by end December 2019 and converted into legislation within six months.