10th June, 2003
Ministry of Power  


STATE POWER MINISTERS' CONFERENCE ON JUNE 12


A one-day Conference of State Power Ministers will be held at New Delhi on June 12, 2003. The issues for discussion at the Conference, organised by Ministry of Power, are Capacity Addition, Rural Electrification and Accelerated Power Development and Reforms Programme (APDRP). Power Ministers, Secretaries, Chairmen of SEBs of various States and UTs are expected to participate in the Conference.

A Conference of State Power Ministers was held in May, 2002 to accelerate the rural electrification in States having a backlog of villages to be electrified. With the combined efforts of the Ministry of Power and the State Governments the programme or rural electrification has been accelerated. For the first time in the last five years, more than 5000 villages were electrified in a single year. However, keeping in view the challenge of electrifying the balance 70135 villages and for providing electricity for the de-electrified villages, there is an urgent need to accord priority to rural electrification programme both by the Government of India and the State governments. Central Electricity Authority has estimated the need for creating additional capacity of 1,00,000 MW by the year 2012. A capacity addition of 41,110 MW comprising 14,393 MW hydro, 25,417 MW thermal and 1,300 MW nuclear power has been fixed for the Tenth Five Year Plan. An additional capacity of 3,100 MW is expected to come from renewable sources of energy. The contribution of State sector and private sector during Tenth Plan has been fixed at 11,157 MW and 7,121 MW respectively which is approximately 45 per cent of total capacity addition envisaged.

The APDRP has been fine tuned to incentivise the process of reforms in electricity distribution. The success of this programme would strengthen the State Electricity Boards (SEBs)/Utilities which would result in improving the financial condition of the State. The Ministry of Power has approved projects worth Rs.15,641.71 crore under APDRP and released Rs.1,755.51 crore in 2002-03. The successful implementation of the programme would lead to technological and organisational changes and improved sub transmission and distribution network resulting in reducing technical and commercial (AT&C) losses, improving reliability and quality of power and increasing the net power availability to the consumers.

The success of the reform strategy is predicated upon the States evolving a viable Business Plan for achieving commercial viability by the end of the Tenth Plan. An amount of Rs.379.27 crore has been released during the year 2002-03 as incentive to the States of Maharashtra, Gujarat and Haryana for reducing cash losses as a result of these efforts.

 
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