PANAJI, Oct 28: In a major policy reversal, the Wilfred D'Souza Government on Tuesday decided not to go ahead with the privatisation in the transmission and distribution (T&D) areas of the power sector. The measure which was first mooted early this year by D'Souza's predecessor Pratapsinh Rane was dropped following a meeting of the cabinet. Later the chief minister told the press that the privatisation of transmission and distribution of power would increase tariffs sharply.He however stated that the government would permit the private sector to set up captive power plants though they would have to sell excess power to the state grid for distribution. The government also decided to return loans taken from the Power Finance Corporation (PFC) for privatisation of T&D.
The CM also informed the press that his government would honour the power purchase agreement signed by the Rane Government with Salgaoncar-Reliance Power Project. The company which has already completed its plant is now awaiting environmentclearance from the Centre before it begins to generate power.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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