The crucial meeting of the group of Chief Ministers with the central ministers on power sector reforms ended inconclusively today, even as they decided to have another go at resolving the issues on July 6.
The meeting which was a follow-up of the March 3 meeting of all state Chief Ministers with Prime Minister Atal Bihari Vajpayee, discussed the report of the Montek Singh Ahluwalia Committee on securitisation of state electricity dues, but without being able to come to any acceptable conclusion.
Briefing reporters, power minister Suresh Prabhu said the report was criticised by some of the Chief Ministers who said they needed some more time to study it.
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Incidentally, the report was presented to Prabhu by Ahluwalia nearly a month ago. The next meeting will also consider the second part of the report which will be on reorganisation of the SEBs itself including reforms in distribution.
Today's meeting of the empowered committee of nine Chief Ministers with power minister Suresh Prabhu, finance minister Yashwant Sinha and deputy chairman of Planning Commission KC Pant was the first meeting of the group to discuss the implications of the recommendations of the report.
The report has suggested securitisation of 50 per cent of the total dues of the SEBs, which is Rs 41,000 crore at present through issue of bonds carrying a rate of interest of 8.5 per cent.
To ensure compliance it also said that the coal and power CPSUs should stop supplies to defaulting electricity boards along with the deduction from plan funds by the Planning Commission.
Prabhu agreed that the states had expressed reservations about the extent of the penalties that should be levied on defaulters, and the ability of the states to shoulder the fiscal burden of the securitisation.
While Prabhu lauded Rajasthan for its impeccable record, several states including Madhya Pradesh, Orissa and West Bengal objected to the severe penalties proposed by the panel against defaults.
But Prabhu disclaimed suggestions that the report is biased towards CPSUs and said they too had criticised it. He, however, claimed that the package as worked out cannot be changed.
Pant said today