‘More Pvt Firms Needed in Power Transmission’

Published: 23rd January 2015 06:00 AM  |   Last Updated: 23rd January 2015 03:59 AM   |  A+A-

NEW DELHI: A government advisory panel, headed by Railways Minister Suresh Prabhu has mooted more private sector participation in the power transmission sector that is largely government held.

The Advisory Group for Integrated Development of Power, Coal, and Renewable Energy chaired by Suresh Prabhu in its report to the Ministry of Power, stressed the need for private participation in power transmission sector.

The group in its report said private firms account for 35 per cent in power generation as against only 3 per cent in transmission. “This needs to be enhanced,” said the group in the report.

The government panel wanted biddings for transmission projects to be expedited and suggested minimising the time in granting clearances would help faster creation of infrastructure assets. It also suggested that of SPVs (special purpose vehicles) should be carried out with three months.

Regarding projects to be developed by the private sector, the government panel suggested that a list of such projects should be prepared and also wanted that a long term transmission plan should be created as that would indicate the kind of infrastructure required ahead of power generation.

Ministry of New and Renewable Energy, Ministry of Power, Central Electricity Authority and Power Grid Corporation would need to interact on a regular basis through institutionalisedmechanism due to unpredictable nature of renewable energy.

The group also suggested that the mechanism to identify critical transmission constraints, formulate specific projects and have them executed in the most effective manner, should be put place for the sector to attract investors.

Other suggestions made by the group include enhancement of coal production in short, medium and long terms.

It has called for improvement in Coal India and its subsidiaries.Also to supplement domestic coal production the panel has suggested opening up of the coal sector.

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp