The Planning Commission has stressed upon the need to encourage private sector role in the development of the energy sector and regulatory agencies for tariff fixation in order to meet the capacity addition targets of 40,245 mw fixed for the Ninth Plan. It has also stressed on commercialisation of central PSUs.Of the total addition of 40,245 mw envisaged, 11,909 mw will be in the central sector and 10,748 mw in the state sector which works out to 29.6 per cent and 26.7 per cent of the capacity addition respectively. A capacity addition of 17,588.5 mw, constituting about 43.7 per cent of the capacity to be added during the Ninth Plan, is proposed to be in the private sector.
Taking into consideration the factors which resulted in the 46 per cent shortfall in capacity addition in the Eighth Plan, the Ninth Plan has prioritised the accelerated completion of ongoing schemes along with initiation of measures to facilitate investment in new projects.
Inadequate funding of the state and central sectorprojects, procedural delays due to land acquisition and environmental clearances, unresolved issues in fuel linkages, suspension of World Bank support and other agencies were the main reasons resulting in a capacity shortfall in the Eighth Plan. The actual capacity achieved was only 16,422.6 mw as against the target capacity addition figure of 30,538 mw.
As per the draft Ninth Plan, delays relating to finalisation of PPAs, guarantees and counter guarantees, timely environmental clearances are a few impediments, which has affected the flow of private sector participation in power and needs to be looked into. To avoid repetition of this scenario, the Ninth Plan programme has set a host of priorities for achieving the targeted capacity addition which includes:
* Maximisation of benefits from the existing power plants by improving the efficiency and capacity utilisation along with reducing T&D losses.
* Facilitating the setting up of appropriate institutional and legislative mechanism for reforms andrestructuring of the power sector.
* Greater emphasis by both public and private sector undertakings in generation, T&D sector for improving the reliability and quality of power supplies to the consumers.
* Undertaking advance action on hydel projects to improve the hydro-thermal mix by the end of the Tenth Plan and revamp the institutional structure and financing arrangements which are not conducive for hydro projects development.
* Emphasis on setting up of high capacity inter-regional transmission links for evacuation of power from mega projects in the Ninth and Tenth Plans.n Facilitating gradual shifting from the state/regional grid based operation to an integrated national grid.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
