Centre Not To Take Over Dabhol Power Project

Union power secretary A K Basu today categorically ruled out the prospect of the Centre taking over the Enron-promoted Dabhol power project.

"We cannot take over the project and we are not prepared to buy power from the project. The problem has to be solved between the two parties involved - the Dabhol Power Company (DPC) and the Maharashtra government," Basu said.

He was speaking to newspersons on the sidelines of an international conference on 'global participation in Indian national grid energy management and convergence,' organised by the Power Grid Corporation of India and Fica.

Earlier, delivering the keynote address Basu said the Union government had drawn up a plan to add about 1,00,000 mw by the end of the 11th Plan period (2012).

This, he said, would entail an investment of $200 billion along with the attendant investment in transmission and distribution facilities.

"The thrust of the investments in the power sector had earlier been mainly towards capacity addition. A decision has now been taken to accord equal emphasis on development of transmission and distribution sector to match the generation programme. It is estimated that an investment to the tune of $50 billion in the transmission sector alone will be needed to match the capacity addition programme," Basu said.

He also sought to underplay the effect of the Dabhol controversy on foreign investments in the power sector.

He said, till date, a total of 27 private power sector projects with a capacity of around 5,500 mw had been commissioned. Another 19 projects of 5,850 mw are under construction. Most of these projects had foreign partners, Basu added.

Union minister of state for power Jayawantiben Mehta said the government had taken landmark policy initiatives by making a series of amendments to the Electricity Act, 1910, and Electricity Supply Act, 1948.

"These include the constitution of a Central electricity regulatory commission at the federal level, state regulatory commissions in various states, an independent status for transmission activity, concept of Central transmission utility and state transmission utilities and evolving guidelines for private participation in transmission sector," Mehta added.

She said Powergrid had identified a basket of projects which had been thrown open for private sector participation an investment of $4.8 billion.

She pointed out that 30,000 mw, which is about 40 per cent of the total power produced in India, is being wheeled through Powergrid.