MP power needs FDI: Chamber

Assocham President Mahendra K Sanghi has suggested Madhya Pradesh (MP) should allow big power projects to come up. Just the 1,000-mw Indira Sagar project and the 520-mw Omkareshwar power project will not serve the purpose, he feels.

Demand for power is growing by 10 per cent every year, and the demand-supply gap may reach 700 mw even if these two projects are completed by 2007, Assocham has warned. The problem cannot be solved by raising power tariffs, which the Madhya Pradesh State Electricity Board has frequently done.

Sanghi has said according to a technical report of the Narmada Valley Development Corporation, the capacity of the two power plants will be only 25 per cent of the total.

As a result, the state will be able to add only 400"�500 mw to its existing capacity. Similarly, supply from the Sardar Sarovar project will be barely 25 mw.

The state government, Assocham feels, should try to tap Reliance Energy, STI India, Aban Power, and NTPC. The coal supply can improve if the state government initiates dialogues with Australia, China, and Indonesia.

Free power should be discontinued.

For the rural infrastructure development fund of Nabard to be effective, power projects should take shape.

Power board officials should be responsible for pilferage and transmission and distribution losses above the cap set by the Madhya Pradesh Electricity Regulatory Commission.