Stating this at a conference on energy conservation organised by the Confederation of Indian Industry (CII), Union power minister P R kumaramangalam said that the bill proposes setting up of a joint select committee which would look into the issues relating to the policies of energy conservation. The draft, he said had been prepared after extensive meetings with industry leaders, chambers, consumer groups among others.

Kumaramangalam also said that mere legislations would not suffice and that a public climate had to be created to make industry and people aware of saving energy. He said that experience has taught him to make the provisions of the bill voluntary.

"Moreover, the provisions in the proposed bill cannot be implemented unless corporates find them viable. Otherwise it would just enlarge the list oflegislations", he said.

The minister indicated that the forthcoming legislation would be harsh but declined to divulge details of the proposed Bill.

Stressing on the need to save on energy costs, the minister said that every mega-watt saved meant a savings of Rs 3 crore in investments. Energy costs are growing at 15 per cent compounded annually. He urged the CII to carry out a national campaign for energy conservation.

Kumaramangalam said certain quarters had suggested him to provide subsidies to reduce over-consumption of power. Though he is not averse to the idea of providing subsidies through lower excise duties, the problem could not be addressed unless corporates themselves find the idea of energy conservation profitable for them.

"Considering the fact that production of 1 mw of electricity requires three crore of investment, means that corporates could save that much money by saving one mw of electricity, which in a way is a profit for them", he said. Kumaramangalam said that investment to thetune of Rs 30,000 crore is required to meet the current power demand and added that energy conservation could solve some of the problem. When asked about state governments decision on imposition of minimum tariff on agriculture at 50 paise per kilowatt, he said the ball is in the court of state electricity regulatory commissions (SERCs).

Karnataka seeks to add 1000mw

Bangalore: Karnataka government has drawn up an ambitious plan to augment power generation by 1000 mw in the coming years apart from 730 mw of additional power being added to its grids this year, minister of state for power, Sharanabasappa Darshanapur said here on Friday.

The minister said the state had requested the Prime Minister, A B Vajpayee to dedicate the fifth unit of the Raichur thermal power plant and awaited confirmation from the Prime Minister.

Darshanapur said two units with 50 mw capacity each at Kadra and two units with 40 mw capacity each at Kodasalli would also be commissioned during may. The state government hadplans to set up 210 mw capacity seventh unit at Raichur plant and another 500 mw thermal power plant at Bellary, besides 260 mw capacity thermal plant at Jindal there.