SEB LOSSES TRIP POWER SECTOR REFORMS
Article Abstract:
The Government of India had chalked out several reforms for the power sector for attracting an investment of Rs250,000 crore required till 2002 AD. But these reforms could not achieve the results unless the loss-making state electricity boards (SEBs) are revived. SEBs incur Rs10,000 crore loss every year. Eighteen of the 20 SEBs have recorded negative growth. The SEBs have to mobilise Rs12,066 crore to achieve a three percent rate of return. The Government of India set up a Central Electricity Regulatory Commission (CERC) and brought in reforms like privatisation of transmission sector and formulation of a new mega and hydel policy as part of the reforms. CERC will regulate tariff of generating companies, govern inter-state power transmission and frame rules regarding arbitration. The Government also plans to set up power trading companies (PTC) for buying power and selling them to SEBs. The state governments have been asked to take the initiative to set up state electricity regulatory commissions (SERC), corporatise SEBs and clear the massive Rs17,000 dues to central power companies. SERC and CERC should work in tandem to prevent power theft and high transmission and distribution losses to revive SEBs. (um)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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COAL INDIA SHELVES DIVERSIFICATION, POWER JV PLAN
Article Abstract:
Coal India Ltd (CIL) has decided to abandon its diversification plans and its proposed joint venture with National Thermal Power Corporation (NTPC) to set up pit head power plants. It has decided to focus on joint ventures in coal mining for captive consumption by the power projects being set up by NTPC and independent power producers. CIL is expected to enter into a captive mining joint venture to supply coal to the 3,960 megawatt power project at Hirma in Orissa, which is being promoted by Southern Electric of the USA. It is estimated that an investment of Rs4,000 crore will be needed to develop the Kulda and Garjanbahal mines of Mahanadi Coalfields Ltd, to supply 19.13 million tonnes of coal every year to the Hirma project. (khr)
Comment:
Decides to abandon diversification plans & proposed joint venture w/ National Thermal Power Corp to set up pit head power plants
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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