Need to check cost of power, says Planning Commission

The Planning Commission today expressed concern over the high generation cost, as well as over 30 per cent distribution losses in the power sector, saying there was a strong need to tackle this problem.

“The cost of power sold by a number of power generating companies, particularly during periods of high demand, has been extremely high. It has resulted in a huge jump in prices. There is a strong need to effectively tackle this problem,” the panel report on the Integrated Energy Policy (IEP) stated.

The report further stated that even though some states had a franchisee model, large areas remain uncovered, with more than 30 per cent distribution losses. The report revealed that long-term loans from Power Finance Corporation (PFC) and Rural Electricity Corporation (REC) were still not available.

Moreover, in order to bridge gap in supply of fuel and power, India plans to acquire uranium assets in Kazakhstan and Mongolia for its nuclear power plants.

“Efforts to conclude agreements of cooperation with several countries such as Kazakhstan, Mongolia and Namibia to enable import of uranium assets are at various stages of progress,” said the document stating the progress of IEP. The report said negotiations with Kazakhstan on supply of natural uranium were in an “advanced stage”. India had signed an agreement with Namibia on August 31 on cooperation in peaceful sources of nuclear energy.

The pact is an ‘umbrella agreement’ that includes sale of uranium to India. The document on IEP noted that the Department of Atomic Energy had signed memoranda of understanding (MoUs), fuel supply agreements and cooperation pacts with the US, France and Russia. And that MoUs have been signed by the state-run Nuclear Power Corporation with Westinghouse Electric Company and General Electric for setting up 1,100 Mw and 1,300 Mw reactors, respectively, in the country.