'Power sector needs Rs 10,00,000 cr investment'

Of the revised estimates for the proposed capacity addition by 2012, include around 83,000 Mw from conventional sources such as thermal and hydro, the draft report of the sub-committee of a Group of Ministers said.     

About 27,000 Mw generating capacity are likely to be added through new and renewable energy sources and captive and power plants.     

Out of the planned 80,000 Mw capacity, around 9,000 Mw has already been commissioned, over 65,000 Mw is under process and the rest are yet to be awarded.     

Power Bonds, which could be structured as a suitable tax free transferable instrument with a lock in period of at least five years and maturity of 15-20 years may be issued to raise funds for the projects, the report said.     

About Rs 50,000 crore could be raised through these bonds during 2007-12.     

The report suggested allowing additional exemption of Rs 50,000 per annum above the existing ceiling of Rs 1,00,000 to individuals for investment in infrastructure bonds, shares or debentures in a company engaged in infrastructure, including power sector. 
    
The government has also been asked to raise Rs 35,000 crore by enhancing the limit of Rs 50 lakh per investor to Rs one crore in case of an individual or Hindu Undivided Family.