Replying to a debate on the annual financial statement for the year 1998-99 and revised estimate for 1997-98 of the TNEB in the Assembly today, Health and Electricity Minister Arcot N Veerasamy said the state Government was keenly observing the ongoing reform process in Maharashtra and West Bengal.

Reacting to apprehensions expressed by members in this regard, the Minister assured, ``We will move slowly and cautiously.'' He added that discussions were on between the EB management and the various workers' unions, who expressed their opposition to the reform process involving the private sector.

The government wastaking all steps to encourage private sector investment by ensuring uninterrupted power supply. While the demand-supply shortfall was presently about 600 MW in Tamil Nadu (which required 5,400 MW of power), the Government hoped to tide over the power crisis by purchasing 400 MW power from the eastern and western regions. He said while the 196 MW GMR Vasavi project would be commissioned by the year-end, the state had also signed agreements with Maharashtra to get 200 MW and the same quantum from Punjab and Orissa.

The Board would purchase power from captive units at a rate of Rs. 2.25 per unit. Within six months, the TNEB planned to purchase 63 MW from a plant in Gummidipoondi.

To ensure that power is transported from the eastern and western regions without any technical snag, about 1,000 capacitors were installed while 344 more would be in place by mid-December

The government allocated Rs 90 crore to replace ageing cables and other rundown equipment in the state's transmission network before June nextyear. Similar projects would be undertaken in the other corporation areas in the state -- Madurai, Coimbatore, Salem and Tiruchi. The revamping would also be undertaken in the municipal areas.

As announced recently, the state will get an additional 400 KV Cudappah-Sriperumbudur transmission line with a capacity to carry 400 MW. In another 12 months the line would be ready. Simultaneously, the state was adding 60 new sub stations every year.

Reiterating the Government's firmness in continuing free power supply power to the agricultural sector, the Minister asserted that there would be no change in this policy.

Among the proposals to augment power generation, the Board has forwarded a proposal to the state Government for a joint venture for two additional 500 MW units in North Chennai and a 500 MW unit at Tuticorin.

To meet the power needs of the country, the Centre envisaged putting up plants worth 40,000 MW within the tenth five year plan period. Tamil Nadu's contribution would be 10,000 MW, he said.Computerised billing will be introduced shortly with the help of the private sector.