Financial Daily from THE HINDU group of publications
Monday, Feb 10, 2003
Financial Daily from THE HINDU group of publications Monday, Feb 10, 2003 |
|
|
|
|
|
Industry & Economy
-
Power ADB loan for power sector likely by Nov Our Bureau
THIRUVANANTHAPURAM, Feb. 9 THE State Government should be receiving the Asian Development Bank (ADB) loan for power sector reforms most likely by November this year, according to Mr Kadavoor Sivadasan, Electricity Minister. Speaking to newspersons, the Minister said that this would be independent of the loan that the State Government has received from the institution in December last under the Modernising the Government Programme (MGP). Officials have been directed to negotiate the power sector loan only within the framework finalised by the previous Government, Mr Sivadasan said, adding that only the Cabinet of the Council of Ministers would have the final say on accepting the terms of the loan. Referring to the talks on Friday between a visiting team of ADB and Kerala State Electricity Board (KSEB) officials and local ADB consultants, Crisil and Nexant, the Minister clarified that no decision had been taken on hiking power tariff. Crisil had been asked to prepare a tariff petition for being submitted for the consideration of the State Electricity Regulatory Authority, which alone had the power to decide on a power tariff revision, if any. The meeting discussed the draft final report of the ADB consultants on restructuring of the KSEB and other aspects. The report would be finalised after incorporating the suggestions of the board and the State Government. The ADB consultants had only suggested that the tariffs should be progressively increased to reflect the cost of energy. They had wanted the Government to provide Budgetary allocation for power subsidy. "There was no demand from them to entirely eliminate cross-subsidies. But the average cost of energy would have to be brought down. This can be achieved by reducing transmission and distribution losses." The Principal Secretary (Power), Ms Lizzie Jacob, and the KSEB Chairman, Mr T.M. Manoharan, who represented the Government at the talks with the ADB team, had requested that the process of corporatisation be delayed and the profit centres under KSEB be allowed to function for more than a year so that their efficacy could be assessed. The formation of the profit centres did not necessarily presage prospective corporatisation, the Minister said. The profit centres have not been given full functional independence after apportioning assets and liabilities. Once this is done, the board would be relegated to a position where it would be taking only policy decisions.
Article E-Mail :: Comment :: Syndication
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |
Copyright © 2003, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|