Delhi CM calls for more pvt-public initiatives in power sector

New Delhi, May 28 (UNI) Delhi Chief Minister Sheila Dikshit today stressed upon the need to promote more public-private partnership models in the power sector to augment generation.

''We need to rethink our policy so that a vital infrastructure like power can be augmented in the fastest possible way,'' she said, addressing a Conference of Chief Ministers convened by the Prime Minister at the Vigyan Bhawan here.

She said Delhi is a natural resource poor state as it has no resources of coal, gas, wind power, hydel power but it is an economically booming area in conjunction with the NCR.

''We need to look at regional development of vital infrastructure like power, water and roads rather than look at state confined solutions. States owning mineral resources are demanding share of free power or variable cost power as an incentive. This is a vital decision and I would prefer a higher incentive by way of royalty to be revised regularly from time to time through a formula based system depending on the prevailing price of minerals,'' she said.

This would enable the generator to increase the variable cost which can go towards tariff fixation, she observed.

''We need to create conditions to involve the private sector in a much bigger way by promoting more public-private partnership models in all aspects of distribution, generation and transmission,'' she added.

Admitting that Delhi has higher AT&C losses than are acceptable, Ms Dikshit said ever since the distribution system was put on public-private partnership model, the AT&C losses have been reducing consistently at the rate of four percent per year.

''From an average of 50.53 percent in 2002 to 30.93 percent in 2007. This is much higher than the target of 15 percent set by the Planning Commission, but we have taken measures to achieve this target over the next few years,'' she said.

Since reduction in power theft directly adds to the benefit of the consumers, she said the government was pursuing the matter of AT&C loss reduction actively.

''We have also streamlined the system of timely payment of government electricity dues, which are substantial, to the Distribution companies. We are confident that the above measures will make the power sector stable and sustainable in the years to come,'' she stressed.

MORE UNI