Apart from providing financial support to states for R&M projects, the Centre had allowed them to invite private players. However, in some cases, the states have yet to announce the needed guidelines.

Maharashtra is considering R&M projects through a joint venture route where the Maharashtra State Electricity Board (MSEB) will be one of the partners. As per the plan, the assets of MSEB's existing plant will be evaluated and used as equity contribution.

The Centre also plans to complete the ongoing 200 R&M projects during 1998-99 and identify R&M requirements at other 18 thermal power stations. These projects will be carried out by the end of the Ninth Plan.

The Centre has been implementing R&M schemes on a regular basis since the Seventh Plan and hasalready spent around Rs 870 crore till January this year on such projects. Power Finance Corporation (PFC) alone has provided a low interest loan of Rs 164 crore to SEBs last year. International agencies like the World Bank and OECF contributed around Rs 200 crore while the states chipped in with the balance.

The current year's requirement is around 260 crore. The World Bank cancelled its loans to MSEB and the Madhya Pradesh Electricity Board (MPEB). The shortfall will now have to be met through other resources.

A study conducted by the Planning Commission last year also supported additional outlay for R&M projects. At present, around 2.5 per cent of the entire power sector outlay is spent on R&M, over 56 per cent on generation followed by around 31 per cent on transmission and distribution. The balance is used for rural electrification and other activities.

The completion of the R&M projects at 44 thermal power station will translate into an additional 7,864 million units a year. There will be an extra100 mw in peaking capacity and the life of 24 thermal units will be extended by 15-20 years.

The Centre had first launched a massive R&M drive in September 1984 which covered 163 thermal units generating 13,570 mw in 34 selected stations.

This required an investment of Rs 1,066 crore of which around Rs 402 crore were provided under central loan assistance to various SEBs while the balance was met through the state plan.