The Union Cabinet today approved the proposal of the Ministry of Power for operationalization of the Power System Development Fund (PSDF) and the scheme formulated for utilization of funds deposited therein based on the procedure laid down in the Central Electricity Regulatory Commission (CERC) Power System Development Fund Regulations.
Briefing the media Union Finance minister P. Chidambaram said that PSDF would be operationalized within three months.
He also said that the Power System Development Fund would be utilized for creating necessary transmission systems of strategic importance based on operational feedback by Load Dispatch Centers for relieving congestion in Inter-State Transmission Systems (ISTS) and intra-state system, which are incidental to the ISTS.
The PSDV will also be utilized for installation of shunt capacitors, series compensators and other reactive energy generators for improvement of voltage profile in the grid and Installation of standard and special protection schemes, pilot and demonstrative projects, and for setting right discrepancies identified in protection audits on regional basis.
It will be used for Renovation and Modernization (RandM) of transmission and distribution systems for relieving congestion and any other scheme project in furtherance of the above objectives, such as, conducting technical studies and capacity building, etc as well.
