Minister demands rapid change for India power sector

18 Jan 2002 – Indian Union Power Minister Suresh Prabhu has called for a rapid shake-up in the country’s power sector after it was revealed that losses among the State Electricity Boards (SEBs) now were equivalent to 1.5 per cent of GDP.

“The power sector has reached a do or die situation, and it needs to be rapidly and systematically restructured to make it commercially viable,” said Prabhu at a review meeting with the SEBs. He called for a paradigm shift in the approach of electricity supply in order to bring in accountability right from the micro level upwards.

The Indian government is providing financial assistance to the SEBs through an Accelerated Power Development Programme [APDP]. “The allocation under the APDP is being enhanced to cover more areas,” Prabhu said.

“Such assistance will not be made available again and this is the last opportunity for the SEBs to systematically work for transmission and distribution loss reduction.” This would strengthen the sub-transmission and distribution network and improve the quality and reliability of power supply, said the minister.

Grid investment
Separately, India’s grid company PowerGrid (PGCIL) is inviting private sector participation in a tenders process for 30-year licences. A shortlist of private parties are being invited to submit their techno-commercial and tariff proposals to set up projects on a ‘Build-Own-Operate-Transfer’ (BOOT) basis.

As part of two-stage bidding process, request for Qualification (RfQ) documents on an international competitive bidding basis were issued to interested parties for their participation. Six parties submitted their “Qualification Statements” by the stipulated date to participate in a request for the proposal stage.

No posts to display