The Hindu Business Line : PM for rational pricing, distribution policies in power

SPREADING POWER: The Prime Minister, Dr Manmohan Singh, along with the UPA Chairperson, Ms Sonia Gandhi, and the Power Minister, Mr P.M. Sayeed, launching the Rajiv Gandhi Grameen Vidyutikaran Yojna in the Capital on Monday. — Kamal Narang

New Delhi , April 4

THE Prime Minister, Dr Manmohan Singh, today said that the country needs to have "rational pricing and distribution policies" to attract investments into the power sector.

Calling upon political parties to shun differences over the issue of user charges for electricity, Dr Singh said that there should be a "broad consensus" on energy policy to attract new investment for sustaining over seven per cent economic growth.

"The challenge of rational pricing and distribution of electricity has to be addressed in a non-partisan manner. We need to work towards more rational pricing policies to ensure new investments," he said while launching the Rajiv Gandhi Grameen Vidyutikaran Yojna.

The new scheme, aimed at providing electricity to 78 million households in 1,25,000 villages across the country by the year 2009, was launched in the presence of the National Advisory Council Chairperson, Ms Sonia Gandhi.

The Prime Minister said that electricity should be valued and used judiciously.

"Even when Governments offer subsidy to certain categories of users, they must understand the relevance of this subsidy and have respect for the asset being provided to them. I, therefore, urge our political leadership to take a more long-term and national perspective in pursuing energy policy."

Dr Singh also said that the Government was committed to providing access to electricity to every village over the next five years and that the new programme was one of the most important promises that the administration was committed to implementing during its present tenure.

"The electrification of rural India is a key foundation stone in the modernisation of our agriculture and in improving the quality of life for our citizens living in the villages. We have already taken far too long a time to bring the light and energy that electrification provides to rural India. We cannot delay the implementation of this basic commitment any longer."

Giving details of the scheme, the Power Minister, Mr P.M. Sayeed, said that the Government has allocated Rs 5,000 crore for providing subsidy under the scheme.

Speaking on the occasion, Ms Gandhi underlined the Government's commitment to ensure proper monitoring and involving panchayats for proper implementation and achievement of physical targets.

"Rural electrification in all its aspects forms a key — in fact, I would say the key component of Bharat Nirman. Rural electrification is an objective to be pursued in its own right. But its multiplier effects will be very significant. The diversification of the rural economy, so very essential to manage the demographic pressures in the countryside, depends critically on the easy availability of reliable power."

She added that Parliament was shortly expected to make the National Rural Employment Guarantee Act a reality and that the objective of accelerating the creation of productive job opportunities in the villages could be fulfilled only if a solid rural electricity network was developed.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
VSNL served notice on ILD calls issue

NCMP schemes to cost additional Rs 47,000 cr — Planning Commission meeting today

BHEL feels hamstrung by tender conditionalities

PM for rational pricing, distribution policies in power

ITC, Centre settle excise case

Ministry finds gaps in Tata-Murdoch DTH shareholders pact

Wipro gets I-T demand notice for Rs 261.7 cr

Good recoveries bring cheer to bankers

Madhavpura Mercantile Co-op Bank case — ICAI council recommends removal of two members