UPA govt to change power policy to boost hydro power generation

Vadodara, Dec 24 (UNI) The UPA government is contemplating changes in the power policy to augment hydro power generation in states like Arunachal Pradesh and Himachal Pradesh.

Disclosing this here today, Union Power Minister Sushil Kumar Shinde said his government had decided to change the policy to woo private investors to set up hydro power plants there as the two states had got huge potential to generate over 200,000 MW of hydel power.

''Arunachal Pradesh alone can help generate 150,000 MW of hydro electricity, but we have to overcome the problem of insurgency and road communications there,'' Mr Shinde told newsmen here.

The Power Minister expressed optimism that an additional 66,000 MW of power would be added as targetted for 11th Five Year Plan (2007-12) with an investment of a whopping Rs 264,000 crore.

Admitting the government's failure to achieve the 10th Plan target of 41,000 MW, he said the nation would be adding only 30,000 MW power by the end of the current plan. He also expressed concern over the power scenario in majority of the states and their dependance on central power allocation.

Referring to the 4000 MW Ultra mega power project proposed to be set up at Mundra in Gujarat's Kutch district jointly by the Central Electricity Authority (CEA) and Power Finance Corporation (PFC), Mr Sindhe said the project estimated to cost Rs 16000 crore was the first of its kind in the world. Besides, its power would be the cheapest, he added.

Mr Shinde, who was earlier closeted with Gujarat Energy Minister Saurav Patel and senior authorities of the Gujarat Urja Vikash Nigam Limited (GUVNL) to discuss the power scenario in the State, appreciated Gujarat for having achieved remarkable success in reorganising the power sector by bringing a new Electricity Act in 2003. The State Electricity Board which was incurring a loss of Rs 1500 crore, had turned into a profit-making company recording a profit of Rs 200 crore last year following the power reforms, he said.

Referring to Gujarat government's protest against diversion of 200 MW to Mumbai that was earlier made avilable to the State from central grid, Mr Shinde said the centre would help the state tide over its present power crisis considering its sustained progress achieved through power sector reforms.

UNI SS KU SP RK2315