The Hindu Business Line : PM's action plan to end power shortages by 2012

New Delhi May 28 A conference of Chief Ministers convened by the Prime Minister, Dr Manmohan Singh, to review the power sector, has come out with an action plan to eliminate power shortages by 2012.

The plan includes launching of a campaign by all States against power thefts, along with setting up special courts for disposal of such cases; creating a professionally-managed National Power Project Management Board attached to the Central Ministry of Power; setting up a Standing Group of Power Ministers to look into all issues affecting the sector, and a sub-committee of this group to work out the financing aspect of creating additional power generating capacity in the country.

Concluding the day-long proceedings of the meeting, the Prime Minister requested all Chief Ministers to launch a campaign against power theft in their States. "The Electricity Act provides for constitution of special courts for speedy disposal of such cases. These courts should be operationalised soon. At the same time, the Centre will provide financial assistance for upgrading transmission and distribution systems. As losses come down to agreed levels, we will be rewarding performing States appropriately. For this purpose, the Accelerated Power Development and Reforms Programme is being revised and contours of this revised scheme will be announced within two months,'' the Prime Minister said.

Shortages

As for eliminating power shortages by 2012, Dr Singh said the capacity addition plans of the Centre and the States in the Eleventh Plan (2007-2012) were over three times the achievement of the Tenth Plan. "While these ambitions are laudable, we need to have effective project implementation and monitoring structure in place,'' he added.

Consequently, a professionally-managed National Power Project Management Board is to be set up, which would keep track of all projects which are to be completed during the Eleventh Plan, and will assist State and Central utilities in ensuring that project implementation milestones are met for each project.

Also, in order to review the implementation of the resolutions adopted at the meeting, a Standing Group of Power Ministers under the Chairmanship of the Union Power Minister has been proposed, which would meet once a quarter.

Our Chennai Bureau adds: "... These parameters indicate that the efficiencies of the TNEB (Tamil Nadu Electricity Board) are far higher and better than what can ever be achieved by privatisation. Hence I would request that this condition of privatisation need not be insisted upon, since this is delaying the execution of mega power projects," said Mr M. Karunanidhi, Tamil Nadu Chief Minister, at the Power Ministers' conference. (The Centre insists on privatisation of distribution function for a project to be eligible for concessions under the mega power policy.)

He also wanted States to be given the leeway to decide the schedule for reforms in the power sector without having to adhere to deadlines set by the Electricity Act, 2003. "Clubbing the good performing SEBs with the poor performing SEBs in one common category and asking them to carry out certain changes/reforms is not the right approach," he said.

A sub-committee of this Group, to be chaired by the Finance Minster, would be constituted to look at the financing issues, particularly for upgrading transmission and distribution networks.

The group, which would also have the Deputy Chairman of the Planning Commission on board, is expected to finish its work in three months time.

Subsidies

Dr Singh said that while there was a need to offer some subsidised power to the poorest consumers "for some time to come", it was necessary to move towards a more transparent system of subsidies.

On the role of regulatory machinery, Dr Singh said if the regulators "take measures not strictly in consonance with public interest, then I see no reason why the States and the Centre should not intervene decisively... Regulators should regulate — but not over-regulate. They should not become parking places for retired bureaucrats."

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