The MoU was prepared by a joint working group set up in January when Byers visited New Delhi. The memorandum sets out a blueprint for "more co-operation between India and Britain in the field of power," Kumaramangalam said.

He also announced that the Vizag power project to be built by the Andhra Pradesh government with the British company National Power will "suddenly get a push". Two "little points" that have delayed start of that project are likely to be sorted out soon, the minister said.

Speaking on the snags in the Vizag power project, the minister said the project has been delayed over an agreement between the state government and the promoters on the capital price. The other is over the timing for the application of escrow, which the state government wants to work out three months before the project is launched. "We think this position is quite reasonable," the minister said. A significant element of the MoU is the "sharing of information and experience in power regulation", the minister said. India will also be looking to British experience to develop the power pool concept. "We want to make power supply more competitive and more responsive to consumer needs," the minister said.

The MoU provides for British expertise in "tariff determining practices, factoring of regulations, application of advanced designs, rapid transmission through privatisation and fly ash projects," the minister said.It provides for exchange of experts and information, joint studies and pilot and demonstration projects, Kumaramangalam said.

"India and Britain will set up a working group to be chaired by the power secretary in India and his counterpart in Britain," he said. "It will meet every year alternatively in each country."

The agreement with Britain will tie in with legislative reforms in power. This will include a new bill to be introduced in the monsoon session of Parliament that will make it "statutorily compulsory" to make power generation energy efficient and also commercially viable, Kumaramangalam said.

IANS