Cms' Meet To Discuss Action Plan For Power

Major decisions on reforms and restructuring of state elecricity boards, rationalisation of tariff, increased participation of the private sector in power distribution, setting up of regulatory commissions at national and state levels are expected to be taken up during the meet.

Prime Minister H D Deve Gowda had convened a meeting of Chief Ministers in the capital on October 16 to discuss issues related to the power sector.

The Prime Minister had urged Chief Ministers to evolve a national consensus on finalisation of a national policy, which would enable the country to get over power shortage.

He had emphasised leaders should work collectively, leaving aside their political affiliations. Attributing the power shortage in the country to a lack of a comprehensive national energy policy, the Prime Minister had made the following policy announcements:

* Commitment to further delegation of powers to states for clearance of power projects of any size and cost, even beyond the existing limit of Rs 1,000 crore.

* Setting up of an empowered committee for speedy clearance for public and private sector power projects.

* Delegation of power to state governments to accord environmental and forest clearance to power projects based on the environmental guidelines issued by the environment and forests ministry.

* Similar delegations will be done in regard to other clearances given by the government of India.

The power ministry had circulated a draft common minimum national action plan for power for discussion in the Chief Ministers' conference which included issues relating to setting up of regulatory commissions and rationalisation of tariffs.

While there was a general agreement on the draft actional plan, the following suggestions were made by the Chief Ministers:

* Finalisation of the role of CEA, FIPB and the environment and forests ministry.

* Formulation of a national fuel policy for the sector.

* Incentives for exploitation of hydro potential.

It was decided the power ministry would develop a revised draft common minimum national action plan for power and circulate it to the states based on the Chief Ministers' suggestion.

The December 3 meeting will consider the revised plan.