Tata Power Company managing director FA Vandrevala asserted that the approved National Electricity Policy (NEP) is an enabler and not a substitute for action. "Our concern on the pace of reforms in power distribution still remains," he said in a reaction to the release of NEP. Mr Vandrevala said, "This policy has been in the making for the last 18 months and its finalisation and approval by the Cabinet is a great step forward for the power sector and the country.

The policy will now provide clarity to the regulators — the Central Electricity Regulatory Commission and the State Electricity Regulatory Commissions (SERCs), which are required to be guided by NEP in various matters. Likewise, the Central Electricity Authority will now be in a position to formulate the National Electricity Plan, which has the NEP as its starting point."

The approved policy has incorporated a specific time-frame for various important actions such as the national electricity plan which are to be prepared within 6 months, notification of the state grid code by SERCs not later than September. It is hoped that these time frames would be adhered to and postponement will not be sought as done in the past for the Electricity Act 2003.

The plan prepared in accordance with the policy would facilitate the development of the power system based on optimal utilisation of resources. This would also facilitate decisions by investors in the sectors of generation and transmission in particular.