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New power Bill set to free captive generation

Our Bureau

MUMBAI, July 2

THE Union Power Ministry is thinking of completely freeing captive power generation. Mr Ajay Shankar, Joint Secretary, Union Power Ministry, said here that the Electricity Bill, which is likely to be introduced in Parliament ``soon'', would liberalise ca ptive generation.

``To ensure this, the Centre is in the process of giving guidelines to the State Governments under the present laws and will provide for it under the new law,'' Mr Shankar said.

Mr Shankar urged industry to invest in transmission and distribution to boost power sector reforms.

Speaking to newspersons after an interactive session with industry representatives organised by the Indian Merchants' Chamber here on Monday, Mr Shankar said the Government would push for privatisation of distribution in the Electricity Bill.

Speaking at the function, the State Energy Secretary, Mr V.M. Lal, said the Maharashtra State Electricity Board was still the best in the country ``minus Enron''. ``All the problems created by that project (Dabhol) are coming in the way of reforming the power sector in the State,'' Mr Lal said.

Mr Adi Engineer, Managing Director, Tata Power, said the most important thing in reforming the sector was speed. ``Debate alone is not enough. What we need is speed. And, instead of difficult ones, the Government should start with easier propositions in transmission and distribution. For example, islands of industrial activity such as Nagpur could be privatised first. Besides, the Government should also de-politicise new projects,'' he added.

Mr Shankar said the second part of the Montek Singh Ahluwalia report on power sector restructuring is expected shortly, while an ``empowered committee'', including Mr Suresh Prabhu, Union Power Minister, is looking into the implementation of the first pa rt of the report, he said.

The Secretary declined comment on the ``active role of facilitator'' being played by the Centre in the Enron renegotiation process.

He also said that the metering of 11 KV stations across the country would be completed by March 2002 while metering of other customers would be completed within two years.

Pic.: Mr Ajay Shankar, Joint Secretary, Ministry of Power (left), and Mr Arvind Jolly, President, Indian Merchants' Chamber, at a meeting held in Mumbai on Monday.

Picture by Paul Noronha