The Hindu Business Line : Govt in talks with allies on amendments to Electricity Act

The Minister for Power, Mr P.M. Sayeed, with the Assocham President, Mr Mahendra K. Sanghi, at the 8th Assocham Energy Summit in the Capital on Thursday. — Kamal Narang

New Delhi , Aug. 25

THE Power Minister, Mr P.M. Sayeed, on Thursday said that the proposed amendments to the Electricity Act would be made in consultation with allies of the ruling United Progressive Alliance (UPA).

This comes in the wake of widespread criticism of the proposed amendments, which include provisions aimed at clipping the tariff-setting powers of power sector regulators.

"We have been holding talks with the UPA allies, including the Left parties. On the basis of these talks, amendments (in the Electricity Act) will be made subject to clearance by the Cabinet," Mr Sayeed said at the sidelines of a seminar organised by Assocham here.

Speaking on the issue of the coal shortages faced by power projects, Mr Sayeed said that during the last six years, only one project of coal production was given clearance out of the total 28 projects, resulting in capacity shortages.

"The situation is what we have inherited. On the other hand, the present government has already cleared five projects in the coal sector," he said. The energy sector grew by 7.5 per cent in the first quarter of this fiscal against 5.2 per cent in the previous quarter, he said, adding that the month of June witnessed 9.3 per cent growth. "We will meet the target of 1,40,000 MW of power-generating capacity in the Tenth Plan," he added.

Earlier addressing the seminar, Mr Sayeed said indigenous resources have to play a vital role in meeting energy needs as international political environment does not give the required level of confidence about the assured supply of energy and stable price regime over a long period of time. However, energy resources procured from outside would continue to play an important role, as indigenous sources especially that of petroleum and allied products were scarce, he said.

"Fortunately, we have reasonably large coal, lignite resources and our hydro resources are very large. Recent discoveries of gas are quite encouraging. Our nuclear capabilities, sooner or later, will have to play significant role in the energy mix," he said.

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