PM calls for more reforms in power sector

By Our Special Correspondent

NEW DELHI, DEC. 11. The Prime Minister, Mr. A.B. Vajpayee, today called for more reforms in the power sector so that production and supply of electricity could become a commercial enterprise which would be self-sustaining even as it benefited consumers.

Addressing a function here on the occasion of the silver jubilee of the Central Electricity Authority (CEA), the Prime Minister said there had been a rapid increase in power generation in the past few decades, but the output could not keep pace with the rising demand for power.

Listing the initiatives undertaken by the Government to overcome present power shortage, Mr. Vajpayee said the Electricity Acts of various States had to be amended to pave the way for the entry of private investors and for formation of independent regulatory bodies at the Centre and in the States.

Simultaneously, efforts were on to restructure the public sector power entities by unbundling generation, transmission and distribution to minimise losses and provide reliable and affordable power to consumers.

A new Electricity Bill was also on the anvil.

The Deputy Chairman of the Planning Commission, Mr K. C. Pant, said the time had come to move away from populist policies in the power sector and the mindset had to change from ``State will pay'' to ``consumer must pay.'' He expressed concern at the slowdown in additional power generating capacity and said these projects had to be speeded up in order to ensure that the economy grew at eight to nine per cent in the coming years.

Mr. Pant pointed out that many of the private sector projects had not come up because of the poor financial health of the State electricity boards which were supposed to buy the power generated by these projects. He, therefore, called for accelerated reforms so that these boards could be restructured.

The Minister for Power, Mr Suresh Prabhu, in his presentation, said that along with the objective of creating an additional one lakh MW generating capacity by 2012, it would be necessary to stress the quality and affordability of power as well.

He called on the CEA to provide a renewed thrust to research and development so that electricity could be made available at globally competitive prices and Indian industry could compete effectively in the market place.

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