Date:27/09/2004 URL: http://www.thehindu.com/2004/09/27/stories/2004092706780400.htm

Andhra Pradesh

`Power sector set to meet Plan target'

By Our Staff Reporter

HYDERABAD, SEPT. 26 . The Union Minister for Power, P. M. Sayeed, has said the power sector is on course to meet the 10th Plan target of adding 41,000 MW of generating capacity.

Addressing the press here on Sunday after inaugurating the 500 MW unit at the NTPC Ramagundam power plant, Mr. Sayeed said additions to power generation had fallen woefully behind target in both the 8th and 9th Plans. While the cumulative target for the two plans was to add 35,000 MW generating capacity, less than 50 per cent of this had been achieved.

Private sector

The shortfall in the last two Plan periods was mainly due to private sector participation continuing to be much lower than expected, he said, adding that with the Electricity Act 2003, in place and power reforms having been initiated in all States, "private players are regaining confidence to enter the power sector." Mr. Sayeed clarified that the Government would not give any counter-guarantee to power projects and they would have to compete with existing power-generating units on cost and quality.

Even if the expected private participation was less in this Plan period, public sector power undertakings were fully prepared to meet the Plan targets on their own, he said.

Providing details of capacity addition in the power sector, Mr. Sayeed said in the 10th Plan, 7,458 MW had already been commissioned and a further 27,112 MW was under construction. In addition, non-conventional sources were expected to add 3,000 MW and power projects based on Krishna and Godavari gas would contribute another 3,000 MW.

Project reports

He said detailed project reports were being prepared for 73 hydroelectric schemes, which would produce a total of 33,000 MW. These projects were expected to come up in the 11th Plan period.

The Union Power Secretary, R.V. Shahi, the CMD of NTPC, C.P. Jain, and other senior officials were present.

Free power

Responding to a question on free power given by the State Government, Mr. Sayeed said the Electricity Act, 2003, allows State Governments to give subsidy to any part of the community in whatever form they want. He further said that this was not a concern of the Union Government.