Speaking at a seminar on power organised by the Associated Chamber of Commerce and Industry (Assocham) and the United States Information Service (USIS), he said that a model framework for financing power projects has to be framed which should spell out the debt-equity ratio structure for the public and private sector projects.

This model, Singh said should also state the extent of external commercial borrowings (ECBs) that could be tapped for these projects.

V K Pandit, power secretary said the Indian power sector is fast moving towards a consumer and service oriented regime, with the regulatory commissions expected to be in place in as many as 10 states by the end of the current financial year.

Pandit said that the setting up of regulatory commission would go a long way inpromoting private sector investments and all the state electricity boards (SEBs) should go in for setting up the state electricity regulatory commissions.

"By the year 2000, all states are expected to have regulatory bodies in place which will regulate issue related to the power sector", added Pandit.Acting US ambassador E Ashley Wills said foreign investors need assurance of their investments and India should minimise the perception that doing business in the country is risky.

Complementing government for initiating major reforms in the power sector, Wills said there is a need for a consistent and transparent policy that would encourage private sector investments in the country.