No 'concrete' proposal to set up equity fund for power sector

The government today said there is no "concrete" proposal for setting up of an equity fund or asset reconstruction firm for stressed power projects although the issue has been discussed with banks.
"While there is no concrete proposal at this stage for setting up of an equity fund/asset reconstruction company (ARC)for the stressed power projects, the proposal was discussed in the meeting held on June 23, 2014 with the banks and financial institutions," Power and Coal Minister Piyush Goyal said in a written reply to Lok Sabha.
He further said "the Department of Financial Services has since informed that SBI has been requested to examine the proposal further."

Last month, Financial Services Secretary G S Sandhu had said that there was a proposal to create an ARC where some of these banks and the power companies can join hands and can set up a company that would revive incomplete projects and hand it over back to the promoter after revival.
In order to boost the power sector in the country, Goyal said that the government has taken various steps including expeditiously resolving issues relating to environmental and forest clearances for power projects under implementation.
The government also accelerated generation capacity addition during 12th Plan with a proposed target of 88,537 MW from conventional sources and about 30,000 MW from renewable energy sources.

Among other measures included undertaking a massive programme for strengthening of inter-state and inter-regional transmission capacity for evacuation of power and bridging the gap of indigenous coal availability through coal imports for increased generation by thermal plants.

Also, a new scheme has been announced in this year's Budget for strengthening of sub-transmission and distribution networks and for segregation of agricultural feeders.
This is in addition to the existing scheme of Restructured Accelerated Power Development Reforms Programme (R-APDRP), under which upgradation of existing distribution networks is taken up in collaboration with states.
In a separate reply, Goyal said the government has drafted amendments to the Electricity Act in a move to improve grid security and efficiency in distribution sector.

"Ministry has drafted the amendments to the Electricity Act, 2003 based on the recommendations of a committee headed by Chairman, Central Electricity Authority (CEA)," he said.
These amendments are expected to bring further improvements in grid security, efficiency in distribution sector through separation of carriage and content, rationalisation of tariff and dynamic and responsible regulatory framework, he said.
The proposed draft amendments were circulated in October, last year for seeking comments.