The Hindu : Integrated energy policy on the anvil

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Friday, Sep 27, 2002

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Integrated energy policy on the anvil

By Our Special Correspondent

NEW DELHI Sept. 26. The Minister of State for Power, Jayawantiben Mehta, today said an integrated national energy policy delinking the power sector from politics, according primacy to technological and financial engineering and revamping of distribution was on the anvil.

Inaugurating the India Power Forum meeting 2002, organised by the Associated Chambers of Commerce and Industry (Assocham), the India Energy Forum and CDG of Germany, Ms. Mehta said the biggest challenge faced by the power sector was distribution. "Lack of sufficient investment for a long time, antiquated technologies, high transmission and distribution losses, highly de-motivated and demoralised staff has added to the woes of the distribution network and led to the total unavailability of the Indian power sector'', she said.

The Minister said huge cash losses repeatedly sustained by the State Electricity Boards were mainly responsible for lack of investment and growth of the sector. This had acted as a dampener for investment by foreign or private investors.

The Power Secretary, R.V. Shahi, said for addition of one lakh MW in a decade, an enabling framework was already being provided by delicensing generation and incentivising States to reduce cross-subsidies in phases and open access in distribution. In addition, the Centre was helping States contemplating anti-power theft legislation. The aim was to reduce thefts to the extent of 10,000 MW in five years and 25,000 MW in 10 years.

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