Divergent practices for Regulatory commissions: A new bill might follow a uniform framework
The government is set to revive an initiative of its predecessor to make regulators of key sectors such as power, telecommunications and railways accountable to Parliament. This move is expected to boost private investments in the infrastructure sector.
The planning minister Rao Inderjit Singh has instructed the infrastructure division of the Planning Commission to finalise the Draft Regulatory Reform Bill, 2013 by incorporating the views of the different ministries.The minister is looking forward to introduce the Bill in the winter session to revive investor confidence in the sector and give a thrust to the ailing infrastructure sector.
The draft Bill, if approved, will be applicable to sectors including oil & gas, coal, internet, broadcasting & cable television, posts, airports, ports, waterways, mass rapid transit system, highways, water supply and sanitation.
In 2009, the Congress-led UPA government had started the discussions on passing a law to monitor the functioning of a large number of regulatory authorities in the country. The government’s aim was to ensure orderly development of infrastructure services, enable competition and protect the interest of consumers through the regulators. The government was hopeful that this move will secure access to affordable and quality infrastructure.
However, the Bill could not see the light of day during the term of the UPA government.
Last week Singh admitted that the present legal framework on regulatory reforms needs some rethinking. The regulatory commissions in the country are accountable to neither government nor Parliament and this situation needs to be changed. Regulatory commissions in different sectors follow very divergent practices and require re-examination to have a uniform framework. Singh also mentioned that the NDA government will undertake the regulatory reforms in order to make them effective and answerable.
Source- The Economic Times
