3 Psus To Hog 58 Per Cent Of Power Sector Outlay

National Thermal Power Corporation, Nathpa-Jhakri Power Corporation (NJPC) and Power Grid Corporation will get the lion's share of funds earmarked for the power sector in the 1997-98 budget at the cost of other public sector power units. The three corporations will corner about 58 per cent of the Rs 8,078 crore outlay.

The budget envisages a 23 per cent increase in the outlay for the sector. Of the Rs 8,078 crore, Rs 6,817 crore has been allocated to nine public enterprises that fall under the administrative purview of the power ministry. Besides NTPC, NJPC and PowerGrid, the other PSUs are National Hydroelectric Power Corporation (NHPC), Power Finance Corp (PFC), Damodar Valley Corp, North-Eastern Electric Power Corp (Neepco), Tehri Hydro Development Corp and Rural Electrification Corp (REC).

 

Although the 1997-98 budget estimate for investment in public enterprises has risen by only Rs 959.6 crore, the increase in the outlay for NTPC, NJPC and PowerGrid amounts to Rs 1,322 crore. This has occurred due to a cut in allocation to other PSUs.

The allocation to PowerGrid, Neepco and REC declined significantly over the last year's figures. The decline in funds allocation to these corporations is about Rs 570.94 crore with each of these corporations' facing a decline of 5 per cent.

The allocation to NTPC for the year is Rs 2122.6 crore (31 per cent of the funds for investment in public enterprises) which represents an increase of Rs 640.3 crore over the last year's revised estimate. Interestingly, the increase in the outlay for the corporation is financed from internal and external budgetary resources (IEBR) as there is a decline of Rs 48 crore in the budgetary support to NTPC.

Similarly, PowerGrid's allocation (Rs 1600.55 crore for 1997-98), has increased by Rs 272.74 crore, but this increase is again being financed through a increase in IEBR of Rs 290 crore, while the budgetary support declined by Rs 17.59 crore. NJPC is to get an allocation Rs 960 crore (14 per cent of the outlay) which is Rs 410 crore more than the last year's revised estimate.

Although NHPC has been provided 13 per cent of the outlay, the increase over the last year's revised estimate is only Rs 146.38 crore which is only 1 per cent over last year's figure.

The total outlay for the power sector for 1997-98 (Rs 8078.86) crore includes the central sector plan's of Rs 6942.85 crore and the state plan's contribution of Rs 348 crore. A total allocation of Rs 1,136 crore to Nuclear Power Corp and Neyveli Lignite Corp are also included in the government's total power outlay although the two PSUs do not fall under the administrative purview of the power ministry.