23th April, 2002
Ministry of Power  


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.