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'Ranga' scripts powerful plan for first 100 days

In a major policy initiative, the power ministry has fixed a time-limit of 100 days on the proposal of securitisation of dues of the central public sector companies to clean up the books of State Electricity Boards or SEBs.

Securitisation of dues of PSUs

A Cabinet note to this effect would be circulated soon. It proposes to convert Rs 120 billion of the outstanding dues of around Rs 290 billion in seven-year bonds, Power Minister P R Kumaramangalam and his deputy Jayawantiben Mehta said in New Delhi today.

Explaining the modalities of securitisation of dues, Kumaramangalam said an amount of Rs 120 billion would be converted into bonds, to be issued to the government at a coupon rate of 10.5 per cent. This step would help the SEBs to convert their working capital dues into debts and also in planning to clear their dues. The interest liability would also come down substantially, he added.

The ministerial duo released the agenda for the first 100 days of new government which assumed office on Wednesday.

Legislation on energy conservation

Kumaramangalam said his ministry also proposes to take various other initiatives including introducing a legislation on energy conservation, envisaging statutory powers to state and central governments for promoting and enforcing measures.

Bureau of Energy Efficiency

The government also proposes to set up a Bureau of Energy Efficiency within 100 days .

On the issue of Y2K compliance, the power ministry has fixed a deadline of October 31 and independent audits would be conducted during November-December to confirm the compliance before the end of year, Kumaramangalam said.

Bonanza for the North-east

The ministry also proposes to work out assistance programme for an affordable transmission tariff for the north eastern region, keeping in view their economic position and urgent need for setting up infrastructural and developmental activities.

He said the government also proposes to set up a Special Purpose Vehicle for survey, investigations and implementation of Dehang ( 13,400 mw) and Subansiri ( 7,300 mw) multipurpose projects in Arunachal Pradesh alongwith commencement of survey and investigations of both these projects.

Demand-supply mismatch

The minister said that the government proposes to meet the entire demand of electricity by 2010 against the present shortfall of around 12,000 megawatts. To meet the demand, the government proposes to create an additional capacity in the next ten years.

Kumaramangalam said that the government also proposes to work out indentification mechanism between transmission and generation projects to narrow down the mismatch and effect penalty clauses for slow moving projects.

The minister also announced that 1440 mw of power will be added to the existing capacity within next 100 days to improve the power scene in the country.

Kumaramangalam said the government has fixed a deadline of December 31 for the financial closure of 12 fast track private projects. Action would be taken against the defaulters, he said.

UNI

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