Electricity as a subject appears in the Concurrent list of subjects as per the constitution of India. With reference to IEA 2003 provisions explain how the center-state balance is maintained in developing the sector. What is the remedy in case of conflict?

Electricity in India falls under the Concurrent List of the Constitution, meaning both the central and state governments can legislate on the subject. The Electricity Act of 2003 (IEA 2003) is pivotal in defining and balancing the roles and responsibilities of the center and states in the power sector.

Center-State Balance under IEA 2003:

1. Policy and Planning:

   • Central Role: The central government, through the Ministry of Power, formulates national electricity policies, tariff policies, and plans like the National Electricity Plan, which set broad guidelines and frameworks.
   • State Role: State governments are responsible for the implementation of these policies within their jurisdictions, adapting national guidelines to local conditions.

2. Regulation and Licensing:

   • Central Electricity Regulatory Commission (CERC): Regulates interstate matters, such as transmission tariffs and policies for interstate transmission.
   • State Electricity Regulatory Commissions (SERCs): Regulate intrastate matters, including tariffs for distribution companies (Discoms) and consumers within the state.

3. Generation and Transmission:

   • Central Authority: Central agencies like the Central Electricity Authority (CEA) oversee technical standards and grid operation guidelines. The Power Grid Corporation manages the national grid.
   • State Authority: States have their own transmission utilities and are responsible for distribution within their territories. They also have a role in promoting and regulating local generation projects.

Conflict Resolution:

1. Adjudication:

   • The Appellate Tribunal for Electricity (APTEL) is established under IEA 2003 to adjudicate disputes between CERC and SERCs, or between two SERCs, ensuring consistency in regulatory practices across states.

2. Harmonization:

   • In case of conflicting regulations or policies, the central law prevails over state laws, as stipulated by the Constitution of India under Article 254. However, this applies only if there is a direct conflict.

3. Cooperative Federalism:

   • Regular consultations and cooperative mechanisms, such as the Forum of Regulators and joint working groups, foster dialogue between central and state authorities, aiming for a harmonized approach to sector development.

This balance ensures a coordinated approach to developing the electricity sector while allowing states the flexibility to address local needs and conditions.