Centre may sell more electricity from its share to states
Press Trust of India / New Delhi Dec 23, 2009, 17:00 IST
The union government may soon decide on keeping half of the electricity it is entitled to from public sector power generating units for sale to states.
The Centre is entitled to receive 15 per cent of PSU utilities' total output and, hitherto, used three per cent of this for sale to power deficit states.
"We have already proposed to Power Ministry to earmark 50 per cent of central government's share (15 per cent) of electricity, or 7.5 per cent of the total, in central government utilities to promote power trading under open access system.
"The government may initiate the process of promoting open access by allocating 25 per cent of its share of 15 per cent," Planning Commission Member B K Chaturvedi told PTI.
He said, "Power Ministry has circulated a proposal for taking measures to promote open access system in the country. It would be considered by the Cabinet."
Under the open access system, power producers can sell their power capacities to the distribution companies of their choice. The proposed move is likely to attract more investments in the sector, which in turn would serve the cause of adding 78,577 MW by the end of the current 11th Five Year Plan.
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