Changes have finally caught up the infrastructure sector since last year but the pace varies from sector to sector, says the Infrastructure Development Finance Corporation (IDFC).
"After the announcement of the New Telecom Policy (NTP), changes caught up with the telecom sector fast, with the power sector also showing the inclination," IDFC said while reviewing the infrastructural development report of the power sector during 1999-2000.
The major stump for independent power producers (IPPs) continues to be the poor health of State Electricity boards (SEB), the report noted.
Only three projects with an aggregate capacity of about 1800 MW -- Dabhol Power Company-phase II, Samalpatti Power Company and ST-CMS Electric Power Company -- achieved the financial closure this year, the report stated.
Issues relating to escrow put spokes on several IPPs, with Madhya Pradesh and Tamil Nadu being the most-affected, the IDFC said. At the state-level, reforms have started gathering momentum. Orissa has completed privatisation of power distribution. Andhra Pradesh, Gujarat, Haryana, Karnataka, Rajasthan and Uttar Pradesh, meanwhile, have initiated reforms, the IDFC added. "Even though 12 states have set up regulatory commissions progress made by them seems to be tardy,"
The Centre, meanwhile, has drafted a bill, consolidating all electricity laws into one Act, and has circulated it for discussion.
It may be remembered that the Central Electricity Regulatory Commission (CERC) had issued a tariff order in January 2000, which marks the transition to the available based tariff (ABT) regime for all central power stations which sell power to states. The CERC' s Indian Electricity Grid Code (IEGC) lays down guidelines and standards to be followed by agencies and participants.
The IDFC called the new telecom policy a significant development which aims at providing telephones on demand by 2002 and increasing teledensity to seven by 2005.
Extension of licence period from 10 to 20 years and introduction of multiple operators in both fixed line and cellular services and opening up of the long-distance market to private participation are some of the other welcome highlights of the new policy, the IDFC said. Amendment to the Telecom Regulatory Authority of India (TRAI) Act has also helped in removing some of the anomalies, it said. Also government decision to allow ISPs to set up international gateways is a positive move and has generated interest among operators, the report added.
