POWER MINISTER RELEASES IEA BOOK "ELECTRICITY IN INDIA"
The Government of India had
signed a Memorandum of Understanding with the International Energy
Agency (IEA) in April, 1998 for cooperation in the energy sector.
The IEA is a body created by the OECD countries to advise them
on energy related matters.
The IEA have brought out
a book entitled ‘Electricity in India – Providing power for millions’,
which chronicles and analyses India’s progress towards liberalization
since early 1990s. The book offers examples of how others have
addressed some of the same challenges facing the Indian electricity
sector today.
The book was jointly released
by the Minister of Power, Shri Suresh Prabhu and Ambassador William
C. Ramsay, Deputy Executive Director of the IEA, here today. During
the launch, the Minister congratulated the IEA for the book which
in fact gives a very focused attention to the problems of the
power sector in India today. The Minister added that the recommendations
which have been given by IEA are in line with what is being pursued
by the Government of India. He added that for reforms in the power
sector, the initiative of the States is paramount. The Minister
of Power briefly highlighted India’s plans to develop a power
market and creation of a National Grid. Shri Prabhu suggested
that IEA could perhaps help India in developing a National Information
System which has to be tamper proof.
Ambassador William C. Ramsay
said that India’s electricity market is moving in the right direction
and that the implementation of the reforms must be accelerated,
especially in the states. Mr. Ramsay also commended the Central
Government’s efforts which began in 1991 to attract private investment
and for taking necessary steps to lay out a detailed legal and
regulatory framework in the country which would assist in independent
tariff setting and for rectification of longstanding price distortions.
Mr. Ramsay added that in this transition period, it would be indispensable
that the Central Government set clear reform goals with mechanisms
to monitor progress towards the electricity market. The question
of large transmission and distribution losses and that of subsidies
should also be addressed quickly in order to improve the financial
position of the State utilities.
Secretary, Power, Shri
R. Shahi who was also present on the occasion congratulated the
IEA and added that India would be giving an added thrust for development
of the hydro sector so as to improve the hydro-thermal mix in
the years to come. Shri Shahi and spoke about the Round table
on power sector reforms which was organized in the Administrative
Staff College of India, Hyderabad on the 22nd of April,
2002. Participants from the IEA and representatives from State
utilities and regulatory authorities discussed some of the emerging
solutions being developed in various parts of the country to improve
revenue collection and enhance access to power.
