Central government may pass ordinance to address sector issues

The central government is reportedly mulling over passing an ordinance to tackle various issues in the power sector. The proposed ordinance will ensure sanctity of contracts, restrict cross-subsidisation, mandate discoms to pay their dues on time, ensure independence of regulators, and direct finalisation of tariffs based on costs. These measures were originally planned as amendments to the Electricity Act, 2003; however, states have been opposing these amendments for the past three-four years.