The Planning Commission has ratified the power ministry's demand for earmarking Rs 10,000 crore annually for the accelerated power development programme (APDP) in the Tenth Plan. Of this, Rs 5,000 crore should come in as budgetary support every year, while Rs 5,000 crore would be extended as loans to states by the power ministry.
The Plan panel has also estimated the total cost of adding 50,000 mw in the Tenth Plan would be Rs 3,50,000 crore at current prices. Since the private sector participation in the power generation has been limited, it has said the Central and state undertakings would have to add at least half of the capacity addition target during 2002-07.
The power ministry had earlier sought a three-fold increase in allocation under the programme to Rs 5,000 crore annually during the Tenth Plan period for pushing ahead distribution reforms in the states. The ministry had been earmarked Rs 1,000 crore by way of budgetary support under APDP during 2000-01, and Rs 1,500 crore during the last fiscal, which was used for strengthening the sub-transmission and distribution network in 63 distribution circles across the country.
More From This Section
The power ministry had made out a case for increasing the present level of allocation under APDP during 2001-02, to an annual allocation of Rs 5000 crore for the next five years for conducting systemic improvement in all the 413 circles in the country.
According to power ministry estimates, Rs 80-Rs 100 crore would be required per distribution circle for undertaking reforms. In order to cover all the 413 distribution circles during the Tenth Plan period, an outlay of Rs 50,000 crore was mandated as necessary, according to the power ministry. On this basis, an outlay of Rs 25,000 crore was demanded by the power ministry during the Tenth Plan for implementing projects aimed at strengthening and upgradation of the distribution system.
This amount would be funded through a combination of grant and loan in the ratio of 50:50 for non-special category states and in the ratio of 90:10 for special category states. The loan component would be provided by Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) and other financial institutions.
The power minister also identified 1,00,000 mw new generating capacities which would be added during the next two Plan periods.