Slow growth in power sector is cause for concern: PM

New Delhi, May 28 (UNI) With many states in the country facing peaking power shortages amounting to 25 per cent, Prime Minister Manmohan Singh today warned that this could impede economic growth.

''The country's power sector did not look very promising. We are having an energy shortage of around ten per cent and a peaking shortage of over 13 per cent,'' he said, while inaugurating Conference of Chief Ministers on power-related issues.

There were states whose peaking shortages touch 25 per cent.

Shortages of this magnitude could be a serious impediment to economic activity, he said.

''The problem has been intensified by poor progress in addition to capacity generation, in cutting down losses and in reducing wasteful consumption. Further, the cost at which power was supplied was not on par with the cost in other countries.'' The centre and the states have an obligation to sit together and work out solutions to all problems in the power sector -- solutions for the short term and solutions for the medium term, the Prime Minister said.

''We need to collectively apply our minds to resolving the problems of this sector and resolving rapidly to make this sector a self-sustaining, fast growing one.'' Electricity is vital for sustained economic growth. If we expect the economy to keep growing at nine-ten per cent per annum, we need a commensurate growth in power supply, he said.

''After analysing areas which can be potential bottlenecks in our attempt to achieve rapid growth and eradicate poverty, one can easily identify availability of power as one of the key areas of concern,'' he added.

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