Confident that India will be able to keep power prices at lower levels with better demand-supply management systems, Power Minister Piyush Goyal on Sunday said the prices may come down further.
“Business people will also have to model their business around the right price. They cannot run way with high prices. It is people of the country that would suffer. I am very delighted that the prices (of electricity) are very low and in the days to come we will continue to keep prices under control. Not though artificial controls. But through demand and supply management,” Goyal said on the sidelines of Partnership Summit-2016 here.
Terming “one nation and one price”, he said for the first time in the history of India retail power was available at Rs 2.35 per unit as on December 29. “You could get power anywhere in the country at Rs 2.35. You may recall south India used to buy power at Rs 8 to Rs 10 (per unit). Sometimes it went up to Rs 15. Prices have come down significantly,” he added.
Earlier in his speech he said, state-owned power producer NTPC is setting up a 4,000 mw thermal power plant and 2250 mw solar power project in Andhra Pradesh. Goyal further said the Centre is committed to support Andhra Pradesh in achieving its targets with respect to establishing clean energy projects in the state. Replying to query, he said the appointment of new CMD for NTPC is underway and the selection committee is expected to come out with with its choice of candidate soon.
Moreover, he has said that power sector does not need any “crutches” in form of tax incentives as it is no longer facing any stress and can stand on its own. The statement assumes significance in the run-up to the Union Budget as various sectors are seeking tax breaks and other incentives from Finance Minister Arun Jaitley.
“I believe that now we don’t have to have the crutches of tax incentives. We can stand on our own,” Goyal said. He was replying to a query on whether the Power Ministry will seek any tax incentives for the sector from Jaitley. “Now the approach has been that my power sector can stand on its own. You have seen that with all transparency we have brought all costs down. Now the stress that is faced by the sector is by and large over,” Goyal said. The Minister further said that the UDAY scheme will itself help save Rs 1.8 lakh crore annually within next three years and the savings will go to the people of India.
The government in November launched Ujwal Discom Assurance Yojana (UDAY) for revival of debt stressed power distribution companies. The accumulated debt of these companies is over Rs 4 lakh crore and they suffer losses to the tune of over Rs 60,000 crore every year. Under the scheme, 75 per cent of the debt of these firms will be taken over by the states which would issue bonds to repay the loans.