Prime Minister Manmohan Singh on Wednesday assured the country's leading industrialists, including Ratan Tata and Anil Ambani, that a "pragmatic and viable solution" would be found to the plethora of
problems bogging down the power sector.
At the over hour-long meeting with the captains of industry at his 7, Racecourse Road residence, the Prime Minister said that a secretary level committee, chaired by his principal secretary, will suggest a roadmap for a time-bound solution to the short term problems holding back the power sector. Singh is reported to have told the demoralised industrialists "not to lose heart."
The industrialists highlighted the hurdles that are delaying the implementation of large power projects in the private sector. These included acute shortages of domestic coal and gas, the sudden increase in prices of imported coal for power projects, delay in environment and forest clearances and financing problems.
The need to introduce reforms for turning around the
power distribution companies and the proposal to slap duty on imported power equipment in the forthcoming Budget were also discussed at the meeting. The Prime Minister assured the delegation that immediate action will be taken on these issues and his principal secretary will meet them after a month to apprise them of the progress made. THE DELEGATION of the association of power producers, representing over a dozen companies, will meet the Prime Minister after a period of 90 days to review the progress, sources said.
Singh also assured the delegation of his government's commitment in taking all possible steps to mitigate the problems being faced by the power generation and distribution sector. The Prime Minister underlined that the power sector is involved in the process of nation building and there is a need to reduce risks to make the power projects viable.
He also directed his Cabinet colleagues present at the meeting to make all-out efforts to resolve the key issues impacting the power sector. Those present included, power minister Sushilkumar Shinde, coal minister Sriprakash Jaiswal, deputy chairman Planning Commission Montek Singh Ahluwalia and minister of state (independent charge) of environment and forests Jayanti Natrajan. HEADS of the 12-odd private power companies also met these ministers separately in a series of meetings throughout the day to discuss the problems they face in getting fuel supplies for their projects.
Private power firms have been calling for pooling of domestic and international coal prices in the total cost to be shared by all the power firms. The coal ministry has reportedly rejected this proposal, saying that it is not possible.
However, the ministry appears to have softened its stand on the minimum assured supply of coal to the power producers. Jaiswal said that the ministry may agree for 65 to 70 per cent 'trigger-level', or the minimum level of coal supply to the projects, failing which the coal companies would be penalised.
Courtesy: Mail Today
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