Govt, Group On Power Differ On Allocation Of Rs 10,000 Crore To States

Differences have sprung up between the expert group on power and the government about allocating Rs 10,000 crore to states as compensation for allowing open access to bulk consumers of power bypassing the state electricity boards.

In its note to the expert group, the Planning Commission has said that since the Cabinet has decided that open access will only be introduced in phases, there is no need to provide a compensating sum to states for their potential revenue loss from the measure. The sum is part of the Rs 40,000 crore that the group has suggested by way of central assistance for the power sector that will be provided through the Modified Accelerated Power Development Programme.

Instead, the plan panel which operates the APDP scheme along with the nodal power ministry has suggested that it will be better to hike the allocation for meeting T&D loss to Rs 20,000 from Rs 15,000. It has also recommended that 50 per cent of this should be set apart as incentives for states that achieve the milestones and the rest may be sanctioned as per the recommendations of the monitoring committee. Justifying the measure, the commission has said