Cabinet approves scheme on power sector reforms

By Our Special Correspondent

NEW DELHI, DEC. 1. The Union Cabinet has approved a new programme to fund projects aimed at reform and restructure of the power sector and to improve the commercial viability of the State Electricity Boards, besides measures to improve the performance of generating stations and reduction of transmission and distribution losses.

The projects to be funded under the ``Accelerated Power Development Programme'' would include measures such as setting up of State Regulatory Commissions, and creation of separate profit centres to make the system accountable, apart from projects to renovate and modernise old power plants and upgrade sub- transmission and distribution systems.

The scheme would have an outlay of Rs. 1,000 crores for the current financial year and Rs. 3,000 crores per annum in the subsequent years. The programme is to be implemented over the next decade, right up to the end of the 11th Plan period (2011- 12).

The Cabinet, which met here last evening, also decided to set up a Group of Ministers (GoM) to go into the recommendations of the Parliamentary Standing Committee with regards to `navaratna' companies. The panel had, among other things, recommended periodic review of the performance of the companies to see whether they were living up to the status of `navaratna' that had been accorded to them. The GoM would include the Ministers in charge of Finance, Heavy Industries and Public Enterprises, and Chemicals and Fertilizers.

Briefing presspersons on the deliberations of the Cabinet, the Union Minister and spokesman of the Cabinet, Mr. Pramod Mahajan, said it also cleared a proposal to amend the legislation governing the NABARD (National Bank for Agriculture and Rural Development). But, he declined to give details.

The Cabinet also cleared the deck for the launch of INSAT -3A and 3E, approving their launch by Ariane Space of Europe. While INSAT 3A is scheduled for launch in the fourth quarter of 2001, INSAT 3E is scheduled to be launched in the second half of 2002.

Send this article to Friends by E-Mail

Section  : National
Previous : 2 million tonnes of wheat to be exported
Next     : Panel frowns on railway accounting practices