Recently, a dialogue on systemic issues of poor electricity supply faced by the farmers in Rajasthan has recommended the establishment of a farmers’ cooperative-based distribution model with the regulatory viability under the Electricity Act 2003.
- The dialogue was organized by the Jaipur-based Centre for Energy, Environment and People (CEEP) as part of the ‘Vidyut Samvad’ series here earlier this week.
About Cooperative Society
- Definition: A cooperative society is a voluntary association of individuals with shared needs who come together to pursue common economic interests.
- Objective: The primary goal of any cooperative is to offer assistance to its members, particularly prioritizing the welfare of the underprivileged segments of society, through the principles of self-help and mutual aid.
- Operational Approach: By establishing cooperatives, individuals unite as a collective, combining their individual resources, optimizing their utilization, and deriving mutual benefits.
- In a cooperative society, individuals can join voluntarily and are also at liberty to exit, although they are unable to transfer their shares.
- Types of Cooperatives in India: Consumer Cooperative Societies, Producer Cooperative Societies, Cooperative Credit Societies, Cooperative Farming Societies, Housing Cooperative Societies, and Marketing Cooperative Societies.
- Among the 300 largest cooperative societies globally, India’s Amul, IFFCO, and KRIBHCO are featured.
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Steps taken to strengthen the cooperative movement in India
- Ministry of Cooperation: Established with a distinct administrative, legal, and policy structure aimed at enhancing the cooperative movement.
- The Banking Regulation (Amendment) Act, 2020: Empowers the RBI to replace the boards of Cooperative banks and permits Cooperative banks to raise capital through public issues or private placements of equity or preference shares.
- The National Agricultural Co-operative Marketing Federation (NAFED): Aids Marketing Cooperatives in the States to enhance their marketing operations and improve services to their members.
- The National Co-operative Development Corporation (NCDC): Established in 1963, it offers assistance in the form of loans and subsidies for marketing, processing, storage, and share capital practices in cooperative sugar, spinning, and weaving mills.
- Cancellation of the 97th Constitutional Amendment Act, 2011 by the Supreme Court: This amendment aimed to protect cooperatives by amending Article 19(1)(c) and inserting Article 43B and Part IXB. However, the Court ruled that Part IXB of the Constitution applies solely to Multi-State cooperative societies within states and Union Territories.
- Part IXB of the Constitution outlined regulations for operating cooperative societies.
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Electricity Act 2003
- About: The Electricity Act 2003, enacted by the Government of India, aims to restructure and reform the country’s power sector.
Key Provisions
- State Electricity Board dismantling: Aimed to split SEBs into distinct generation, transmission, and distribution entities for competition and efficiency.
- Delicensing of generation: Removed generation licensing, encouraging private investment and diversification.
- Transmission and distribution regulation: Maintained licensing to ensure reliable supply and prevent monopolies.
- Renewable energy promotion: Mandated incentives and obligations for renewable energy generation.
- Open access and trading: Enabled consumer choice and transparent electricity trading.
- Regulatory bodies establishment: Established SERCs and CERC to regulate tariffs, compliance, and disputes.
National Rural Electrification Policy
- About: National Rural Electrification Policy was notified in compliance with Sections 4 & 5 of the Electricity Act, 2003 by the Central Government.
- Relevant extracts of the National Rural Electrification Policy, 2006
- Goals: For villages/habitations where grid connectivity would not be feasible or not cost effective, off-grid solutions based on stand-alone systems may be taken up for supply of electricity
- State government should, within 6 months, prepare and notify a rural electrification plan which should map and detail the electrification delivery mechanism.
- The plan may be linked to and integrated with district development plans.
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CENTER FOR ENERGY, ENVIRONMENT & PEOPLE
- About: CEEP is a Jaipur-based human-centric research and policy advocacy initiative driving critical research and fostering democratic coalitions for low carbon transition and climate justice.
- Objective: CEEP the intersection of energy, environment and people to enable institutional response, investments and political shift towards clean energy and sustainable practices
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June 3, 2024
