Prabhu to focus on Electricity Bill

Prabhu said he had no plans of changing the existing policy framework. However, appropriate amendments will be made, if required, to speed up the reform process at the state’s level besides encouraging private sector investments.

Apprehending that it was difficult to achieve even half of the Ninth Plan target of adding 57,000 mw capacity, the minister said that private sector was expected to contribute about one third of the targeted one lakh mwcapacity addition.

"The new comprehensive policy framework planned will state clearly what we are going to do and what we want from the private players," he added. Stating that private sector was facing some problems, Prabhu said that he would strive for financial closure by March 2001 of as many projects as possible.

Attaching high priority to the passage of Electricity Bill 2000, for continuing power sector reforms, Prabhu said that he would seek political consensus on this so that "it is passed in Parliament at the earliest." The group of ministers (GoM) had already cleared the Bill and it would be presented in the coming Parliament session, he added.

Prabhu said that the process of securitisation of dues of central power PSUs from the state electricity boards (SEBs) was on and it would be finalised soon while pointing out that securitisation was only a short-term solution to the problem.

"It only increases the temporary cash flow of PSUs and the states need to understand that power generating companies need money to recycle the operations," the minister said.

Stating that improvement in the health of SEBs was on top of his agenda, the minister said the Centre was discussing with the state government so that benefits of power sector reforms actually trickle down to every body. Other priorities on his list includes, reduction of transmission and distribution losses by ensuring 100 per cent metering and electrification of rural areas.