The Hindu Business Line : CII calls for measures to revitalise energy sector

THOUGH the country has made progress in telecom, information technology, knowledge and business process outsourcing sector, India Inc feels that the country is lagging behind on the energy front.

According to the Confederation of Indian Industry (CII) much needs to be done in the energy sector. The chamber has termed some of the recent developments on energy a mixed bag and has described it as one step forward and few steps backwards, resulting in "zero sum net game".

However, the constitution of the Energy Coordination Committee (ECC) and Energy Implementation Committee (EIC) has been a remarkable achievement, the chamber feels. Setting up of ECC and EIC would enable the energy sector to work in cohesion and resolve issues within noticeable timeframes.

However, the chamber feels that a coordinated approach among the constitutions of ECC and EIC could have helped in averting the fuel crisis the country faces today.

According to available reports, CII claims, almost 2,000 MW power capacity based across States in the country involving investments worth Rs 8,000 crore is hanging fire due to unavailability of gas. It calls the delay in signing of gas supply and purchase agreement between two leading parties that entered into gas supply commitments for fuelling 2,600 MW of power capacity based in the western part of the country as `retrograde' and must be curbed.

While taking stock of developments in the electricity sector, CII said it welcomes amendments to the legislation regarding clarification of captive power generation and consumption norms, powers to police at the instance of the Government or the Electricity Commission or any authorised persons, to investigate cognisable offences under the Act, recognition of rural electrification as joint responsibility of Centre and States.