5th June, 2002
Ministry of Power  


USE OF TECHNOLOGY NEEDED TO MAKE POWER SECTOR COMMERCIALLY VIABLE: SURESH PRABHU


The Minister of Power, Shri Suresh Prabhu has said there is an urgent need make use of world class technology in the distribution sector to make the power sector commercially viable. Shri Prabhu was speaking while delivering the special address at the two-day "India Power 2002: Making the Power Sector Viable" conference here today, organized by the Independent Power Producers’ Association of India (IPPAI) in association with the Ministry of Power. The Minister of Power while referring to the issue of technology said, his ministry has now taken the initiative to bring in world-class technology.

Tracing the major problems characterizing the power sector, Shri Prabhu said investments in the power sector were necessary if the Indian economy was to grow at a rapid speed. However since the investments required are huge, not much was coming in because of the unviability of the sector. The Minister said, there was an urgent need therefore to change the mindsets of the people, who somehow believe that it is the duty of the government to provide them with electricity, yet on the other hand it is not their responsibility to pay for the electricity they consume.

The Ministry of Power, the minister said has launched the Accelerated Power Development Reforms Programme (APDRP) to turn the sector around. One of the major thrust areas of the programme is to bring in accountability at the feeder level. Detailed strategies have been worked out and areas where these strategies are to be implemented have been identified, Shri Prabhu said. A dialogue is in process with state governments for the signing of Memorandum of Agreement (MoA), in which milestones will be identified and only then would the money under the APDRP be released. Shri Prabhu said the MoAs are much more stringent and solid than the Memorandum of Understanding (MoU) signed earlier.

Haryana, Rajasthan and Andhra Pradesh were mentioned as some of the states were a nascent turn around could be seen following the application of the reforms programme. However the minister emphasized that it would take much time before the massive structural changes which are being attempted in the power sector under the reforms programme, would begin to bear fruits.