NEW DELHI: The Power Ministry is likely to waive the stipulation for a 26 per cent government stake in companies engaged in captive power generation.

"The Ministry has already favoured dilution of the stipulation to give them a free hand. Its stand has been conveyed at the highest political level," Union Power Minister Sushil Kumar Shinde said on Thursday. A policy decision would be taken shortly.

He was speaking at a seminar on the `Current and future power scenario' organised by the Associated Chambers of Commerce and Industry of India here. The power sector could grow only through public-private-partnership. Creation of fresh capacity in the sector was not solely the Government's responsibility.

On mega power projects, the Minister said the fuel feedstock would be coal, even if it had to be imported in large quantities. Following proposals to establish mega units in Karnataka, Andhra Pradesh and Goa, a policy decision on the number of projects to be implemented would be taken by January next.

Capacity addition

On the Tenth Plan target, Power Secretary R.V. Shahi said the Ministry's review, in consultation with the Central Electricity Authority, showed that by the end of March 31, 2007, a total of 34,000 MW in capacity addition would be available from coal and hydel-based plants which were in advanced stages of commissioning.

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