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New hydro power policy in two weeks

Union Power Minister P K Kumaramangalam today said that the Centre in order to give a boost to the hydro-power sector will unveil a new policy in the next two weeks and announced a Rs 20 billion loan to the Maharashtra government from the Power Finance Corporation for its power projects.

The government has decided to promote the hydro-power projects and captive power projects on a large-scale, and also thermal power projects, provided that they were environment-friendly. The government will also clear 8,500 mega-watt power projects all over the country by this December, the minister announced while addressing an industry gathering hosted by the All India Association of Industries in Bombay.

Reacting to a demand made by Maharashtra Deputy Chief Minister Gopinath Munde, who is also incharge of the energy portfolio, that the Centre should make additional allocations for the state, Kumaramangalam said that the PFC has agreed in principle to provide loans of Rs 20 billion for Maharashtra, which will however be subject to reforms in the power regulating agencies in the state.

Kumaramangalam stated that the government has also decided to give a boost to foreign and private investment in the power sector.

In this regard, the minister will lead a delegation of representatives of power ministry at the World Energy Meet to be held at Houston on September 13. Details about India's power scenario and power projects in offing will be disseminated at the meet to attract foreign investment.

During an interactive session with the AIAI members, the minister said that the Centre is also thinking of a broad captive power policy, though the state governments have their own policies on power sector and added that in the next National Development Council meeting, several issues related to the power sector will be taken up.

He said that efforts should be made to improve the efficiency of the State Electricity Boards and there should be more transparency in drafting the power policies. He said the society is more aware and consumers would like to know the production, transmission and distribution components in the tariff.

Earlier, speaking at the AIAI meeting, Munde stated that recently the power purchase agreement for the Bhadrawati project was signed and the financial closure will be over by October-November.

He said that the Cabinet would meet soon on the issue of rationalisation of power tariff. He said suggestions in this regard were invited from the industry.

Munde said that currently over 1000 mega-watts of electricity is being produced by the captive plants in the state and 1000 MW projects will be cleared soon.

UNI