POST-WAR ELECTRIC POWER DEVELOPMENT 235
Committee’s Recommendations
The Policy Committee on “Public Works and Electric Power,” recommended that the development of electricity supply for areas outside existing licenced areas should be actively pursued, as far as possible, as a state or quasi-State enterprise. If for any reasons the State was not prepared to undertake such development in any area within a reasonable time, private enterprise should not be excluded. They further recommended that, provided efficient and economic operation could be assured to the public, options existing under any licence to acquire an undertaking should, as a general rule, be exercised when they arose. Steps should be taken to eradicate any factors that retarded the healthy and economical growth of electrical development on regional lines whether in Provincial, State or local authority—owned or in commercially—owned electrical undertakings.
In another recommendation the Committee accepted the necessity of laying down financial principles for the control of electric public utilities both in the interests of public utilities as well as of the general public. An Advisory Board should be set up under Section 35 of the Electricity Act to advise Government on the nature, extent and method of application of such principles. On this Advisory Board there should be two representatives of the Central Government, two representatives appointed by agreement with the Provinces, and one representative of the Federation of Electricity Undertakings. The Board may appoint such assessors as may be necessary.
The discussion on the proposal to amend Section 7 of the Indian Electricity Act of 1910, with a view to evolve a systematic and coherent policy for planning electrical development, raised a number of points for examination by the Central Government. The Committee agreed that the Act should be so amended as to give the Provincial Government the first option to lake over an undertaking. The question of amending the Act so as to give power to the Centre to take over electric undertakings, if Central control was considered necessary for inter-Provincial development, was discussed. There was difference of opinion on some aspects of the question, and it was decided that the matter should be further examined in consultation with the Provinces.