Power Projects Totalling 10000 Mw Await Financial Closure: Alagh

Power projects cleared by the government with a total capacity of 10,000 mw are awaiting financial closure, according to power minister Y K Alagh.

India is getting power investment on easier terms and I expect this trend to accentuate, Alagh said, adding that he was more than satisfied with the progress on private participation in this sector.

He said 20 large and medium projects totalling about 7,500 mw capacity had been approved and their finances were also tied up with domestic financial institutions.

These are not counter guarantee projects but are in many cases larger than the fast track projects, he said.

 

Alagh, however, regretted he could not complete key tasks like setting up a central electricity regulatory commission, broadbasing transmission activities, a new energy conservation act and framing a technology policy and finalisation of ninth plan for power sector.

Work on these fronts have begun and I expect them to fructify by the first session of the 12th Lok Sabha, he said. India has shown that it can negotiate and implement large projects.

Alagh said techno-economic clearances were given to projects totalling over 18,000 mw and projects worth another 2,000 mw would be cleared by the Central Electricity Authority during the remaining part of the current fiscal.

When asked about delays in clearance of four of the eight fast-track projects, pending for over five years, the minister said, we are totally committed to these projects. No country can go back from its past commitments. The high-powered board on fast-track projects is working on the remaining ones for early clearances.

At the same time, promoters of the fast-track projects have agreed with some of the conditions of governmental agencies for early clearance, he added.

He admitted that some issues raised by the finance ministry like depreciation and tax provisions on income made out of incentives offered to the promoters, had partially contributed to the delays, but hoped that counter guarantee would be cleared soon.

Government was also clearing investment projects of the public sector power utilities, which would be the mainstay of Indias power planning, and private sector would plan a supportive role for some more time to come, he added. Press Trust of India