The Hindu : Front Page : `World Bank against free power for ryots'

Online edition of India's National Newspaper
Thursday, Oct 26, 2006
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`World Bank against free power for ryots'

S. Nagesh Kumar

ONGC and GAIL are responsible for power crisis, says Chief Minister

Y.S. Rajasekhara Reddy

HYDERABAD: Chief Minister Y. S. Rajasekhara Reddy said here on Wednesday that the World Bank's primary concern while extending the US $ 1 billion assistance to Andhra Pradesh was the Government's policy of supplying free power to farmers.

Responding to a question about the Opposition's criticism of the conditions said to have been imposed by the World Bank whose team visited the State on Monday, he said: "By and large, they are against free power.

But, we have explained to them that farmers are committing suicide and we have to take care of their interests. Andhra Pradesh is the only State which is giving free power to 95 per cent of farmers."

Speaking to The Hindu, he maintained that Andhra Pradesh remained a reformist State and there were absolutely no dilemma on this score in spite of the heavy emphasis his Government was laying on promoting agriculture. "The Government of India wants reforms and so does the World Bank," he added.

Dr. Rajasekhara Reddy explained that free power or not, the crisis in the power sector would have been there. It was primarily the making of the Oil & Natural Gas Corporation (ONGC) and the Gas Authority of India Limited (GAIL) that promised gas supply to four States without ascertaining its availability.

As a result, power projects in the State with a combined capacity of 1500 MW were completed but could not start generation since there was no gas.

"We have been making vigorous efforts for gas supply for two years and it may be 2008 by the time they get the fuel," he added.

Coming down heavily on the ONGC which, he said, appeared to be suffering from "a management crisis", the Chief Minister said he would take up with Prime Minister Manmohan Singh during his visit here on Thursday.

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