New power package soon

NEW DELHI, April 21: A big policy package for the power sector is in the offing. Power Minister Kumaramangalam Rangarajan has given the final touches to the package and is scheduled to make a presentation to the opposition leaders on Thursday. As many as three bills are awaiting clearance from Parliament. These are the Transmission Bill which will allow the entry of private players into this sector; the Central Electricity Regulatory Commission Bill, which had been passed by the Standing Committee on power last year, but could not be discussed in the Parliament. This bill will set up an independent regulatory authority which will decide on tariff issues in the power sector. The third bill on energy audit will make it compulsory for the industry to utilise energy more effectively as a measure of demand side management of power.

The FIPB nod for projects up to 1200 MW may be done away with as had been announced by Prime Minister A B Vajpayee. The minister has already gone on record saying that he willexpedite the clearance for all private power projects for the Ninth Plan, including the remaining five fast-track projects which are still hanging fire. He is also expected to review the tariffs of these projects and reject them, if the tariffs are found to be unreasonably high.

A key announcement from the minister could be that the show-case power projects where India will enter into bilateral negotiations will be finalised on minimum tariff basis.

The liquid power projects are expected to be resolved by the minister.