Govt Sets Up Cell On Power Project Transfer

The Centre has constituted a cell comprising representatives from a broad spectrum of ministries to advise independent power producers on the transfer of power projects. A number of power projects that have clearances have not gone into financial closure.

"The cell will advise power producers on the transfer of these projects to other private parties. This will help in speedier implementation of these projects as fresh techno-economic clearances will not have to be obtained," Union power minister P R Kumaramangalam, said here yesterday. He was speaking at a seminar on "Emerging Trends in Private Power", organised by the Independent Power Producers Association of India (IPPAI). He said the cell comprises representatives from a number of ministries, including those of power, finance, railway and coal. Kumaramangalam also made it clear that the era of the Centre taking a lenient view on outstandings by state electricity boards to central power utilities was over. Last month he laid down the condition that state electricity boards that had outstandings could source electricity from central power undertakings only by opening a letter of credit.

 

He said he was beefing up this measure by stipulating that the Centre would automatically withdraw from the Reserve Bank of India account of state governments whose SEBs had outstandings. He pointed out that SEBs owed National Thermal Power Corporation (NTPC) alone Rs 10,000 crore.

Later, speaking at a meeting organised by the All-India Association of Industries (AIAI), he announced that the Power Finance Corporation had sanctioned Rs 2,000 crore to the Maharashtra State Electricity Board but had added the rider that the state government would have to set up a regulatory authority for determining power tariffs. Kumaramangalam also said a national hydro-electricity policy would be announced in the next fortnight.