New Delhi, Dec. 1: The Union cabinet today approved amendments to the Electricity Act 2003, clearing the decks for power sector reforms.

The amendment will allow the Centre to share the responsibility of rural electrification with the states.

“The Union cabinet today approved the introduction of the Electricity (Amendment) Bill 2005 in Parliament. Hopefully, it will be introduced in this session,” information and broadcasting minister Priyaranjan Das Munshi said.

Central sales tax

The cabinet approved changes in the Central Sales Tax Act, 1956 to improve the functioning of the CST appellate authority.

The Union cabinet, which met under the chairmanship of Prime Minister Manmohan Singh, gave the green signal for introduction of a bill in Parliament to amend the Central Sales Tax Act, 1956, Das Munshi said.

The bill seeks to streamline and improve the functioning of the Central Sales Tax Appellate Authority.

This will resolve expeditiously and smoothly disputes regarding levy of central sales tax in respect of inter-state trade or commerce.

In the original act, there was no mechanism to resolve inter-state disputes.

Farm sector incentives

The cabinet has also approved a bill that will remove bottlenecks in the farm sector, reduce costs and make Indian agricultural produce globally competitive.

The cabinet has decided to introduce the Essential Commodities (Amendment) Bill, 2005 in Parliament.

It was a long-pending demand from political parties and consumer forums to amend the Essential Commodities Act of 1955, Das Munshi said.

The bill will remove unnecessary restrictions and controls on various commodities to ensure remunerative return to farmers and promote consumer interest.

It will also improve international competitiveness of Indian manufacturers and service providers by reducing transaction cost and facilitating smooth internal trade.

PowerGrid project

The cabinet committee on economic affairs has approved the Rs 3,779.46-crore investment in the transmission system of Power Grid Corporation’s Barh generation project, including an interest payout during construction of Rs 179.41 crore.

The transmission system will facilitate evacuation of power from the Barh generation project and its dispersal to utilities of eastern, western and northern regions.