The Union ministry of power will soon announce its captive power generation policy to lift restrictions on the usage of captive power.
Policies are being framed to encourage research and development and promote technology development in the power sector. The ministry has also mooted plans to decentralise the planning and distribution of power from the state level to the district level. However, state government utilities will have to devise this plan for the districts.
"The captive power policy is almost ready and we will be announcing it in a few days time. We are also preparing a policy on training of state electricity board employees, which will also tackle issues like inefficiencies in operations, accountability and corruption," Suresh Prahbu, Union minister for power, said. "Now is the time to start implementing reforms," Prabhu said.
More From This Section
On the large scale power thefts, estimated at over Rs 20,000 crore per annum, Prabhu said the Centre will be bringing out a comprehensive bill for stringent provisions for prevention of theft. "Will and not Bill is required to prevent power theft as all the state governments have been authorised to punish those involved," he said.
The new power policy will also allow the generators of power to sell electricity directly to the consumers. Prabhu, who was addressing the members of the Confederation of Indian Industry (CII) in the city, came in for criticism from the members of the CII for the poor quality of power being supplied to the industries and non implementation of existing electricity laws, besides rampant corruption. Prabhu said 31 per cent of the people in the country enjoyed power supply, whereas a whopping 80,000 villages did not have any power.
On the high cost of power in the country, the minister said competition in the power sector would bring down the cost. "We need to have competition to bring down the cost of power to international level of prices which will enable the industry to be globally competitive," Prabhu added.
SEBs to get more funds
PUNE: The Union ministry of power has decided to increase the allocation of funds to the Accelerated Power Development Programme to Rs 3,000 crore in the current year from Rs 2,000 crore last year.
These funds are disbursed to state electricity boards (SEBs) to pay their past liabilities and wage dues of their employees. This is expected to ultimately help in the improvement of the quality of power supplied to the consumers.
The ministry will insist on the funds being utilised for the purpose it is given, in order to prevent the diversion of funds by the state governments.