The Hindu Business Line : ‘Global financial crisis hits infrastructure investments’

Bangalore, Oct. 30 Investment flows into infrastructure have been hit as a result of the global financial crisis, the Planning Commission Deputy Chairman, Mr Montek Singh Ahluwalia, said here today.

Speaking at the launch of a report titled ‘Technology: Enabling the transformation of power distribution’, Mr Ahluwalia said, “We can see some slowing down of investments in the economy not only because of foreign investors but also because of domestic investors.”

He said the Government planned to expand investment in infrastructure and is examining ways of doing it. “How to do that is what we are looking at,” he said. The new financial constraints that we will face in the in the years ahead because of the global financial crisis does require us to think about how it will impact our ability to fund infrastructure.

Mr Ahluwalia said the fiscal deficit is going to be more due to the unexpected costs borne by the system.

The report provides a technology trajectory for the power distribution companies in three steps, which includes advanced metering to reduce AT&C (Aggregate Technical and Commercial) losses, automation to measure and control the flow of power to and from the consumers on a near real-time basis, and moving to a smart grid to manage outages, load, congestion and shortfall.

The report has been prepared by the Centre for Study of Science, Technology and Policy, Bangalore (CSTEP) and Infosys Technologies on request of the Ministry of Power, which had asked for an update on the 2002 IT Task Force Report.

The report recommends that each power distributing company must define its own priorities and create a customised roadmap. It says companies must focus on business process re-engineering, program management, change management and governance, and adopt standards and future proof designs.

It also recommends the establishment of a national body, perhaps created by an Act of Parliament that can ensure synergy and increase rate of change.

“Without maximum IT injected in the restructured Accelerated Power Development and Reform Program (R-APDRP), we will not reach our 15 per cent target,” said Mr Jairam Ramesh, Minister of State for Commerce and Power.

The R-APDRP program, under the 11th Five-Year Plan aims to reduce AT&C from the present 33 per cent to 15 per cent at the end of the period. “In the next 2 to 3 months we will conduct a feasibility study and then roll out the IT introduction plan.”

More Stories on : Infrastructure | Financial Markets | Events

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

Stories in this Section
Landing system upgradation work at Kolkata airport may delay flights

Indian menu on Malaysia Air

Malaysia Airlines adds flight on Delhi-KL sector

Delhi’s airport opens third runway for round-the-clock operation

‘Global financial crisis hits infrastructure investments’

Allcargo Q3 net surges 151%