Experts Against Freeing Power Projects From Cea Ambit

Many power experts told Business Standard that CEA was the only authority in the country which has the experience, information and expertise in vetting power projects. Without its help and guidance, state electricity boards would find it almost impossible to evaluate these projects.

A member of the Tamil Nadu electricity board said that existing without the CEA is impossible as it is only they who can guide us on technical and financial matters regarding these projects. We do not have the experience, expertise and information to review and clear projects.

Former CEA chairman M K Sambhamurthy pointed out that CEA is the only organisation that has the information regarding generation and requirement of power not only in every state but also in every region. This information is vital to balance the power requirements of all regions.

 

Outlining the role of CEA, he said: CEA is charged with the responsibility of scrutinising power projects from environmental, fuel and techno-economic aspects which are necessary for optimal power development to ensure that the costs associated with incremental capacity addition are minimised. CEA also manages and coordinates inter-state power transmission and load dispatch, advises power ministry in policy formulations, and also arbitrates in matters of dispute among state electricity boards (SEBs), between SEBs and state governments, between SEBs and central generating stations, he said.

Sambhamurthy said: The CEA has never been a regulator which only accepts or rejects projects but has been a participative regulator advising, improving and modifying the projects. Another former official of CEA said, experts from CEA have been regularly consulted by the World Bank for power projects in other countries, but now the trend seems to have changed.