To ensure electrification of all the villages and houses throughout the country within 2012, to ensure quality supply of electricity, it has been estimated that further one lac Mega Watt generation capacity requires to be installed and for such installation eight lac crores of rupees will be required. The Government of India is of the opinion that Generation, Transmission and Distribution of electricity should entirely be managed by private sectors and with this object "Electricity Act 2003" has been passed in June, 2003 in the both houses of Indian Parliament with the grand support of all the ruling parties and rightist opponents. Only the left parties were against promulgation of such Act.

Salient features of Electricity Act 2003.

1. All the three old Acts viz. The Indian Electricity Act, 1910, The Indian Electricity Supply Act, 1948 and The Indian Electricity Regulatory Commission Act, 1998 have been abolished.

2. State Electricity Boards have to be dismantled after one year from the Gazette notification i.e. from 10th June, 2004.

3. Central Electricity Authority will be discontinued.

4. The State Government will be no more in controlling power in question of fixation of Electricity Tariff and tariff will be settled by State Electricity Regulatory Commissions in the States and Central Electricity Regulatory Commissions in Central Sector.

5. Cross subsidy system in Electricity Tariff, by which farmers, small consumers were benefited, will be discontinued.

Our Assumption:

1. With the introduction of Electricity Act, 2003, the electricity tariff will heavily be increased. Farmers and small consumers will not be able to consume electricity. Our agriculture system will be ruined and we will again be dependant on foreign countries in the question of food grains.

2. Existence of Small Scale and Cottage Industries will be seriously endangered.

3. Private capital will not take virtually the responsibility of supplying electricity in villages.

Struggle

National Co-ordination Committee of Electricity Engineers and Employees have been formed to continue struggle with the participation of peasants and workers against implementation of the Act. The left Trade Unions, left peasant movements and the communist party have come forward forth to launch heroic struggle against the Act.