We have to plug into power reforms: PM

Chairing a meeting of power secretaries, the PM made a strong case for reforms in the sector. ‘‘Today, energy shortage is 11 per cent. Over the years, state electricity boards have become financially sick with losses of over Rs 21,000 crore… There is a need to reform the power sector to ensure that it becomes the engine of growth.’’

Stressing that trifurcation of SEBs or ‘‘unbundling’’ was not a goal in itself but ensuring efficiency, economy and enhancement of generation was, he said, ‘‘I want to know why there has not been a boom in private investment in the power sector.’’

The key element underlying reform in many states was ‘‘unbundling’’ whereby generation, transmission and distribution of power is handled by different companies, he said.

He, however, admitted that cross-subsidy remained a critical element in the sector and would continue ‘‘for a long time so that certain sections of society, for whom power is an absolute necessity and cannot afford, can continue to get power.’’