Worried about the status in power sector reforms, especially in the key distribution segment, planning commission has told the Union Power Ministry to announce the extent of review envisaged in the Electricity Act as early as possible to remove uncertainty among potential investors.The commission also wants the ministry to include provisions in the forthcoming tariff policy to implement open access for bulk consumers before the January 2009 deadline to encourage private investment in generation projects."To remove uncertainty among potential investors, the precise elements of the Electricity Act which are to be reviewed should be announced as early as possible. These should address the concerns that have been raised without undermining investor confidence or weakening the drive to create a competitive, efficient power sector," the Plan panel said in its draft mid-term appraisal of the tenth plan.The commission's suggestions assume significance in the wake of the power ministry undertaking a review of the act, considered widely responsible for renewing the interest of private players in the crucial infrastructure sector.However, surprisingly, power ministry officials have not only sought to play down concerns raised in this regard, they have also denied any such exercise was being undertaken.This is despite the fact that Prime Minister Manmohan Singh in December last year had directed Power Minister P M Sayeed to consult Left parties and state governments on this issue.
