The Hindu Business Line : States should pay for free power, says Sayeed

The Minister for Power, Mr P.M. Sayeed, being welcomed by the Power Secretary, Mr R.V. Shahi, while assuming office in the Capital on Tuesday. - Kamal Narang

New Delhi , May 25

THE Central Government today advised the States to foot the subsidy bills, in the case of free power supply to farmers . Speaking to press persons , the Power Minister Mr P.M. Sayeed, said, "State Governments wanting to provide free power must provide for it in their Budget."

The new Congress Government in Andhra Pradesh recently announced supply of free power to farmers. This was followed by the Tamil Nadu Government.

The Power Minister said, his top priority would be rural electrification. He ruled out any immediate review of the Electricity Act, 2003. Recently, the Left parties sought review of the Act.

Mr Sayeed explained that the Government was committed to announcing the National Tariff Policy, the Electricity Tariff Policy and the Rural Electrification Policy, besides a policy on competitive bidding. He also said a national level appellate regulatory tribunal would be established.

According to Mr Sayeed, his ministry would support and provide all assistance to private power producers towards achieving financial closure.

On the fate of the Dabhol power project, Mr Sayeed said that he would request Mr Naresh Chandra to expedite the findings of his committee and submit the report at the earliest.

Mr Chandra, a former Cabinet secretary, heads a committee that is looking into the revival of the Dabhol power project. Significantly, Mr Chandra met the Finance Minister, Mr P. Chidambaram, on Tuesday, and apprised him about the developments of the Dabhol project.