The Uttar Pradesh government has undertaken a five point programme to reform the state power sector at the behest of the World Bank.
The Bank, which is in the process of granting Rs 15,000 crore to the state in the form of tied aid, has directed the state government to liberalise the power sector to bring it on par with the other forward looking states.
The government's refrom initiatives include: setting up of the State Electricity Regulatory Commission, assurance that the Commission will be operational within 90 days from now, privatisation of power distribution in the districts of Allahabad, Noida and Kesa, privatisation of the two power stations of Obra and Anpara (plant A & B) which together genertaes about 2000 megawatts of power and lastly assurance to increase the plant load factor. This was stated by Kalyan Singh, chief minister of Uttar Pradesh during a seminar on "The investment potential of Uttar Pradesh" at the India Economic Summit 1998 organised by the World Economic Forum andthe Confederation of Indian Industry.
"Our New Industrial Policy articulates our commitment to achieve 10-12 per cent annual Industrial growth rate, increase the share of industry in the state domestic product to 25 per cent and employment in the secondary sector from the present 8 per cent to 15 per cent. All this we aim to achieve by the year 2003", Singh stated.
Reiterating that the state administration was committed to usher in an investor friendly atmosphere in the state, he said: "It is my perception that any investors looks for the six basic things in any place before he decides to make his investment. He seeks security of life and property, high quality infrastructure, regular and assured power supply, simple and supportive tax system, freedom from obstructive regulations and finally freedom from red tape".
The chief minister assured that the bureaucracy of the state have been directed to clear all investment proposals within a specified period of time. In case the approvals are not given within the time limit, it should be deemed as given, he said. Moreover, the bureaucracy has been asked to escort the investor at all level to facilitate his operations in the state, Singh stated.
Commenting on the state's initiatives to improve infrastructure, he said: "We have decided to give the highest priority to the development and up-gradation of infrastucture_I am happy to inform you that in this year's Budget, we increased the Budgetary allocation for the roadsector by approximately 250 per cent".
"We have recent;y set up an Infrastructure Initiative Fund with a seedcapital of Rs 100 million. This fund will use national andinternational expertise to develop project reports for the private sector participation. Our recent success in setting up the Noida Toll Bridge Company has encouraged us tremendously", he reiterated.
