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6. Future Course of Action

The government is planning to bring following reforms in the institutional framework of regulatory commissions, their role, functions and relationship with the executive and legislature, their interface with markets and people, and processes and methods of regulation including rule making and dispute resolution:

Empowering all regulators to make and enforce regulations, issue licenses and impose punitive measures including suspension or cancellation of licenses; and set performance standards and determine tariffs.

Ensuring independence of regulatory bodies: the government is planning to make the selection process transparent and shorn of interference.

Fixing the tenure of members: The government is considering stipulation of a uniform tenure of four years for members of all regulatory bodies. Further, to attract quality personnel and enrich the functioning of the regulatory body, remuneration would be enhanced and a provision for having a non-governmental representative, such as an academician or a lawyer, as a member would be included.

Reducing the overlap of jurisdiction between the CCI and regulators; the government is planning to define a workable division of labour and increase the interface between the two, which at present is minimal.

Introducing multi-sector regulators: The government is contemplating the establishment of multi-sector regulators for (i) communications; (ii) transport; and (iii) electricity, fuels and gas. This would eliminate proliferation of regulatory commissions, help build capacity and expertise, promote consistency of approach and save on costs. At the State level, a single regulatory commission for all infrastructure sectors may be more productive and cost effective. States should be encouraged to consider this approach and the scope of their existing electricity regulators could be extended to other sectors.

Constituting appellate tribunals on the lines of telecom and electricity appellate tribunals. Another approach under consideration is the constitution of a single appellate tribunal with regional benches for all regulatory commissions.