March 15, 2002
'28'
PROGRESS OF INDEPENDENT POWER PRODUCERS REVIEWED IN CRISIS RESOLUTION GROUP MEETING
The Minister for Power, Shri Suresh Prabhu and the Minister of State for Power, Smt. Jayawanti Mehta reviewed here the progress of financial closure by Independent Power Producers (IPPs) in a meeting of the Crisis Resolution Group (CRG) with senior officers of Union Ministries, the Central Electricity Authority, State Governments, State Electricity Boards and the Heads of the Indian Financial Institutions and banks.
Chairing the 13th meeting of the CRG, the Power Minister appraised the financial institutions about reforms being undertaken by states as well as initiatives taken by the Center to ensure financial viability of the power sector. The new Electricity Bill has been introduced in Parliament to provide the framework for the next generation of reforms in the sector. The steps being taken for ensuring financial viability of State Electricity Boards are likely to produce result in the next few years. During the transitional period, support is proposed to be given to State Governments to carry forward the process of reforms. Selected IPPs could be supported on the basis of track record of the States in implementing reforms in the power sector.
The status of various IPPs was reviewed at the meeting and several decisions taken for removing the problems in the way of achieving financial closure. The meeting concluded that to ensure required capacity addition, contribution by the private sector is essential.