Online edition of India's National Newspaper
Wednesday, Feb 11, 2009
ePaper | Mobile/PDA Version
Google



National
News: ePaper | Front Page | National | Tamil Nadu | Andhra Pradesh | Karnataka | Kerala | New Delhi | Other States | International | Opinion | Business | Sport | Miscellaneous | Engagements |
Advts:
Retail Plus | Classifieds | Jobs | Obituary |

National Printer Friendly Page   Send this Article to a Friend

Jairam for reviewing Gadgil formula

Sujay Mehdudia

NEW DELHI: Minister of State for Power and Commerce Jairam Ramesh on Tuesday asked the Planning Commission to carry out a full review of the current Gadgil Formula based sharing of power from power projects as the ``unhappy” State governments were finding it ‘unattractive,’ leading to private sector edging out the public sector companies on bidding for various projects across the country.

In a letter to Deputy Chairman Planning Commission Montek Singh Ahluwalia, the Minister of State for Power has stated that it was important that this formula should be reviewed to ensure the healthy growth of the central public sector units (CPSUs) in future. “The experience has been that the home State is unhappy with this formula and feels aggrieved saying that it provides the land and water, it bears the resettlement and environmental costs but its share is not proportionate to the burden it is being asked to bear,” the letter states.

He cited an example of the 840-MW Kahalgoan power project in which Bihar’s share is just 79 MW.

This, Mr. Jairam said, had made a number of State governments going slow on project proposals by the public sector power companies on the grounds that their share was simply not attractive enough. The private sector was able to edge out public sector power companies on this score alone, he added.

On the other hand, the Power Minister said, in the Simhadri project of NTPC, Andhra Pradesh gets the full share of the first stage of 1,000 MW. The Indira Sagar project of NHPC in Madhya Pradesh was another such example. “But these are extremely special cases and there seems to be a feeling that it should not be adopted widely,” he added.

Printer friendly page  
Send this article to Friends by E-Mail



National

News: ePaper | Front Page | National | Tamil Nadu | Andhra Pradesh | Karnataka | Kerala | New Delhi | Other States | International | Opinion | Business | Sport | Miscellaneous | Engagements |
Advts:
Retail Plus | Classifieds | Jobs | Obituary | Updates: Breaking News |


News Update


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | Publications | eBooks | Images | Ergo | Home |

Copyright 2009, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu