Transmission sector in India- regulatory and policy framework
Student name: Ms Akankshya Baruah
Guide: Mr M V Shiju
Year of completion: 2013
Host Organisation: IPPAI
Supervisor (Host Organisation): Mr Raghvendra Upadhaya
Abstract: This report provides a comprehensive overview of the transmission sector in India. The report
identifies the key legislations and attempted to understand how the present regulatory framework in
itself was causing hurdles to sustainable project implementation in the transmission sector. It analyzes
hurdles to economic sustainability from the perspective of the suppliers while simultaneously looking
at issues of social and environmental sustainability from the point of view of project affected people
who ultimately were also consumers of the same power. This project was undertaken based on a
meeting of the Parliamentary sub-group on transmission issues in India, wherein issues relating to
private sector participation in the present regulatory framework were discussed. This report attempts
to identify those aspects/legislations of the present framework, which are unable to provide the
leverage for private sector participation, which is the need of the hour. This report draws its
significance from the fact that no previous attempt has been made to analyze the regulatory framework
from the point of view of both the private sector and the project affected people in one consolidated
document. Further, no other comprehensive list of legislations governing project clearance in the
transmission sector exists to the best of my knowledge.
Part I of this report gives background information on the electricity sector in India, particularly
transmission. It then traces the legislations almost spanning a century and identifies those that at
present govern the sector. Further, it identifies sections of these Acts that impact project clearance.
Along the course of Part III, the report delves into the dynamic issue of land acquisition and ascertains
that land acquisition and resettlement and rehabilitation are the same side of a coin. Part IV combines
both inferences and concludes by explaining in the importance of a balance between economic
viability and social sustainability that the legislations often fail to strike. It also stresses based on a
comparative study (undertaken outside of this project report) the shortcomings of the Environmental
Impact Assessment in India. It finally concludes with recommendations that hopefully will be seen in a
new Act that emerges from the Land Acquisition, Resettlement and Rehabilitation Bill 2011.
Keywords: Transmission Sector, legislation, Electricity Act 2003,Section 164,land acquisition,
compensation, forest dwellers.
