Maharashtra to unveil policy for pvt power projects

Maharashtra's energy minister Dilip Walse-Patil on Thursday said that a general policy on incentives for private mega power projects to be set up in the state would be formulated soon.

In response to a query regarding the pendency of government sanction for several power projects planned in the state by Reliance Energy, Tata Power Company (TPC) and other power utilities, Patil said: "These projects are pending as their promoters had sought several incentives, such as stamp duty exemption, while proposing to set up the plants in the state. Instead of taking decisions on a piecemeal basis, we (the government) has decided to formulate a general policy on incentives for all such new power projects proposed in the state."

Patil was addressing mediapersons following a hour long presentation by Maharashtra State Electricity Board (MSEB) officials on the power situation in the state.

MSEB is actively considering a proposal to outsource power supply and collections from the powerloom township region of Bhiwandi in Thane district to a private power utility on a franchise basis.

An MSEB official said that similar franchise proposals for urban regions such as Pune, Nagpur, Nashik and Jalgaon were also pending before the Maharasthra Electricity Regulatory Commission (MERC) for approval.

The MSEB has envisaged a Rs 56,006 crore ask for investing in its generation, distribution and transmission sectors over the next five years if it is to be able to reach a zero load shedding (power cut) situation.

As of today nearly 3000 MW of load shedding (peak hour power shortage) is reported in the state which is set to rise to 7000 MW by 2009-2010, the official said.

"We have also sought an amendment in the existing law to prevent theft of electricity in the state, as currently power theives may not be prosecuted by police officias. We have also sought the setting up of distinct police stations for this purpose," he said.

A proposal for installing single-phase transformers in the rural sector so that uninterrupted power is available to residential areas as against three-phase transformers that will supply around eight to ten hours power supply daily to electric pump sets on farmlands that will cost Rs 557.34 crore crore is also being implemented in Maharashtra.

The Andhra Pradesh pattern is sought to be replicated in the state and the process is expected to be completed in a years time, the official said.

The state will require Rs 56,006 crore in investments for ensuring a zero load shedding scenario in the state by 2009-2010. Of this, Rs 25, 486 crore is needed for power generation, Rs 13,044 crore in transmission and Rs 17,476 crore in distribution.