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Give industry power at fixed rates, Centre tells states

 PTI |  2016-07-29 23:21:57.0  |  New Delhi

Give industry power at fixed rates, Centre tells states

The Centre on Thursday asked all states to offer power to industries at a fixed rate for a fixed period to attract investments. Power Minister Piyush Goyal said in Lok Sabha that the country was producing sufficient power and hence efforts should be made by state governments to attract industries by offering uninterrupted power.

“Industries need uninterrupted power. If we can guarantee power, investment will come for industries. Therefore, I would like to request all members to persuade their respective state governments to offer regular power to industries for a fixed rate like Rs 4, Rs 4.5 or Rs 5 per unit for 10 or 15 years,” he said during question hour.

Goyal said as per information reported by the states to Central Electricity Authority (CEA), energy shortage at all- India level was reduced to 2.1 per cent during 2015-16 which is the lowest in last two decades. During the current year of 2016-17 (April 2016 to June 2016), energy shortage has further reduced to 0.9 per cent, he said.

The Minister said the Centre has taken a number of steps to provide electricity to every household in the country in next three years. The power supply position is monitored by CEA and it has been observed that demand-supply gap exists in the states and UTs despite availability of adequate power in the country. 

The reasons for this demand-supply gap are sub- transmission and distribution constraints, high aggregate technical and commercial losses and poor financial condition of state distribution utilities because of which they cannot procure required power from the market, he said. Goyal said during the 12th Plan (2012-17), capacity addition of about 86,565 mw from conventional sources and about 
19,500 mw from renewable sources have been achieved till June 30 this year.

During the 12th Plan, 89,813 circuit km of transmission lines and 2,66,033 Mega Volt Amp (mva) of transformation capacity have been completed till June 30, he said. Meanwhile, no final decision has been taken to scrap special purpose vehicles set up for four ultra mega power projects in Maharashtra, Odisha, Karnataka and Chhattisgarh.

“No final decision has been taken to wind up the four special purpose vehicles (SPVs),” Power Minister Piyush Goyal said in a reply to the Lok Sabha. Activities in the ultra mega power projects (UMPPs) -- Maharashtra, Odisha (second additional UMPP), Karnataka and Surguja in Chhattisgarh -- are stuck due to various reasons, including agitation by local people and non-identification of a suitable site. Goyal added that around Rs 96.82 crore has been spent by SPVs set up for these UMPPs. According to the minister, the Chhattisgarh government has said it in not keen on setting up of 4,000-mw UMPP in the state. Four UMPPs, namely Sasan in Madhya Pradesh, Mundra in Gujarat, Krishnapatnam in Andhra Pradesh and Tilaiya in Jharkhand, have already been transferred to the developers, he said.

“Out of the four awarded UMPPs, two namely Mundra and Sasan are in operation,” the minister said. The minister said 6x660 mw Sasan UMPP in Madhya Pradesh, which was awarded and transferred to Reliance Power in 2007, is fully commissioned. The 5x800 mw Mundra UMPP in Gujarat, which was awarded and transferred to Tata Power in 2007, also stands fully commissioned, he added.

Power Ministry to hold global conference on energy sector
Power Ministry is planning to organise an international conference of Power Ministers to improve co-operation in area of energy. “As many as 24 countries have already confirmed their participation in the Switch Conference 2016. It is good idea to hold an International Power Ministers’ Conference there,” Power Ministry Piyush Goyal said. During the Switch Conference scheduled on October 6-10 at Vadodara, the Power Ministry has planned to hold a conference of state power, coal and mines ministers. Power Ministers from various countries will also participate in the conference. Switch is one of the largest electrical expos in the country. It represents one of the biggest networks of electrical manufacturers, innovators, technologies and partners in the industry. It sees footfall of over 8,500 key buyers and more than 1,00,000 visitors. It represents a growth opportunity unlike any other for the electrical industry. Promoted by the government of Gujarat, under Gujarat Urja Vikas Nigam Ltd (GUVNL), this biennial platform is aimed to rev up India’s power sector.


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