Ministry Clarifies Alaghs Statement

The power ministry has clarified that minister of state for power Y K Alagh had never indicated or implied that there would be no additional power capacity in the next two years. A statement, according to a report entitled `Investments crucial to power India into next millennium appearing in the Business Standard on August 5, 1997, may have temporarily stopped many a corporate heartbeat in many an industrial hub.

The ministry says the government has set up a task force under the chairman, Central Electricity Authority, to identify additional projects which would augment capacity by 10,000 mw over and above projects already identified for providing benefits in the Ninth and Tenth Plans.

The government has a detailed plan to approve around 18,000 mw of capacity in the private sector before the end of this year. The ministry says a total energy generation of 429 billion units has been fixed for 1997-98, which represents an increase of over 8.6 per cent as compared with the previous year.

This increase in generation is envisaged from new capacity, and also from an increase in the average plant load factor of the existing thermal power plants through operational improvements, renovation and modernisation. Increased availability of electricity, according to the ministry, will go a long way in sustaining the tempo of economic growth.

Electricity generation has increased by over eight per cent in June and July 1997 compared with the generation over the same months last year. This increase has happened after a gap of 21 months.