The Hindu : Front Page : Despite reminders, power sector decisions remain only on paper

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Thursday, Aug 30, 2007
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Despite reminders, power sector decisions remain only on paper

Sujay Mehdudia

Implement announcements made at CMs’ meet: Manmohan

NEW DELHI: Prime Minister Manmohan Singh on Tuesday asked the Power Ministry to urgently operationalise the decision taken at the Chief Ministers’ conference held in May. His directive came after he reviewed the thrust areas of the power sector and the progress in reforms.

The Ministry has not been able to give shape to the announcements made by Dr. Singh on May 28 despite repeated reminders.

Ministry draws flak

It has come under fire for its handling of the Ultra Mega Power Projects issue in the past and its ability to formulate and implement important policy decisions.

Officials in the Ministry said that faced with a stiff challenge of achieving a generation of 78,000 MW during the 11th Plan period along with reforming the transmission and distribution system, delays in giving shape to an important policy decision were bound to affect progress in various spheres.

The Ministry has not yet come out with a new hydro power policy despite repeated announcements that it is in the final stages of formulation. Power Minister Sushil Kumar Shinde promised on a number of occasions during the last few months that the new policy would be announced within a month.

In his concluding remarks at the Chief Ministers’ conference, Dr. Singh announced the setting up of a National Power Project Management Board, a standing committee to look into all issues in the power sector and a sub-committee headed by the Finance Minister to go into financing issues. The board was to keep track of all projects to be completed during the 11th Plan period and assist State and Central utilities in ensuring that implementation milestones were crossed for every single project.

It was also decided to set up a Standing Group of Power Ministers, under the chairmanship of the Union Power Minister, to look at all issues affecting the sector, including those arising out of this conference and the resolutions adopted. Dr. Singh proposed the constitution of the sub-committee to look at financing issues — particularly for upgrading transmission and distribution networks. But all that has remained on paper.

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