The Hindu : Kerala News : New power tariff policy next month

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Tuesday, Feb 08, 2005

Kerala

Kerala

New power tariff policy next month

By Our Staff Reporter

KOCHI, FEB. 7. The Government will come out with a new national power tariff policy next month, the Union Minister for Power, P.M. Sayeed, has said.

Talking to presspersons after the inauguration of a workshop for mediapersons on the Common Minimum Programme (CMP) organised by the Press Information Bureau here today, Mr. Sayeed said the final draft of the tariff policy and a policy on rural electricity supply were being given final touches. These will be presented in the Cabinet next month.

Though the Minister did not disclose the details of the tariff policy, he said that competition was the governing rule for the tariff. "Quality should not suffer and at the same time power should be available to people cheaply," he added.

The Minister said the expansion project of the National Thermal Power Corporation's Kayamkulam project (from 360 MW to 1,950 MW) had been approved by the Government. The project will be able to meet the State's electricity demands and more, he added.

Restructuring

With regard to the restructuring of State Electricity Boards (SEB), the Minister said no State had refused to restructure their Boards. But 13 States, including Kerala, had asked for extension of time from two months to a year for its implementation. Kerala has asked a year's extension, he added.

The improper transmission and distribution of electricity, which results in huge losses to SEBs, will improve dramatically because of the aggressive reforms being undertaken, he said. "The Electricity Act 2003 provides for a strong enabling structure for ushering in competition and market orientation to electricity business."

In his inaugural address at the workshop, he said that power shortages would be eliminated by 2012. Investor confidence in the power sector has been revived and major lending institutions are ready to fund good projects. So far 11 projects totalling over 4,000 MW have achieved financial closure and another eight projects totalling 9,500 MW are being monitored for according financial closure early.

The workshop was presided over by the former Union Minister Henry Austin. Mohan Joseph Modayil, Director, Central Marine Fisheries Research Institute, spoke on the occasion.

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