February 5, 2002

        The Minister of Power Shri Suresh Prabhu has said the time has come to shift focus to non-fossil fuel based generation of power. This is the only way ahead if the aim of "Power to all by 2012" is to be achieved. The Minister was speaking while delivering the inaugural address at the International Conference and Business Meet on Non-Fossil Fuel Generation here today. Shri Prabhu said non-fossil fuel sources for generation of power have many advantages over fossil fuel sources. Many of them are obvious like environment friendliness. However, he said they also have other hidden advantages. These include longer life spans. Hydro projects have a life span of around 60 years, while fossil fuel based plants have a shorter span of 30 to 35 years. Hydro projects are not affected by increase in costs due to inflation and can also address peaking shortages, which is one of the major problems in the Indian power sector. The Minister said studies have shown that over time hydropower is 24 times cheaper than fossil fuel based power.

        Highlighting changes being undertaken by his Ministry in the sector, Shri Prabhu said the Electricity Bill 2001, which is now before Parliament proposes major changes, one of which includes power supplier of choice for bulk consumers. In addition the Ministry of Power is now giving a major thrust to reforms in the distribution sector. For this the center is working with the state governments as they have direct control over distribution. The aim is to improve efficiency, reduce thefts and improve quality, the Minister said.

        Releasing the Report on the Preliminary Ranking Studies of Hydro-Electric Schemes prepared by the Central Electricity Authority (CEA), Shri Prabhu said this is for the first time that the basin wise prospects for hydro schemes are available at one place.

        The Minister of State (Independent Charge) for Non-Conventional Energy Sources, Shri M. Kannappan in his address said the efforts of his ministry have resulted in substantial achievements over the past decades. With over 3,000 MW installed capacity, the country now has over 3 percent of its power from non-conventional sources. Shri Kannappan said this is no small achievement looking at the constraints of new technologies, high interest rates and above all – institutional barriers that affect the whole gamut of infrastructure investment in the country. The Minister added that efforts are on to source at least 10 percent of fresh capacity addition from renewables by 2012. This would require mobilization of over Rs. 60,000 crore. Shri Kannappan estimated that about 90 percent of this amount would be required from private sources. He said his view was that further growth of renewables would depend on how institutional problems can be addressed and how industry could be motivated to further take-up renewable energy programmes.

        Austria and Norway are partner countries at the three-day International Conference, with Uttaranchal, Himachal Pradesh and Arunachal Pradesh being partner states.