This will reduce undue delays taking place in setting up a power project as a standardised PPA will spell out clear guidelines on which the developer and the state government should negotiate.

Disclosing this at the Euromoney Conference here on Friday, union power minister P R Kumaramangalam said his government would ensure that all reforms measures required for attracting investment in the power sector are initiated well in time.

Setting up of regulatory commissions is one such step in this direction. Moreover, no clearances for foreign equity to the tune of Rs 1,500 crore for setting up a power project in India is another policy initiative taken recently by the government.

In addition to this, according to Kumaramangalam, the government will soon announce thetransmission bill, new liquid fuel policy along with the hydel policy in this session of Parliament. Preparations for a energy audit bill are also on.

The minister said his government is not in favour of privatising public sector power utilities but would rather encourage them to enter into joint ventures.

He said though various states like Orissa, Andhra Pradesh and Haryana are in the process of privatising their distribution systems, at the national level there is no such move on privatising PSUs.

"PSUs already enjoy sufficient autonomy under the navratna and the miniratna packages and funds for the power sector are readily available due to the enormous size of the market. I want that these public sector companies to take more risks, because more the risk more will be the returns," he added.Kumaramangalam said out of the targeted 100,000 mw of capacity generation during the Ninth and Tenth Plan, a committed 80,000 mw will be generated in this period.

Talking about the regulatory Bill, the ministersaid the government has not backed out regarding the provisions of the bill and said, "all the states including Tamil Nadu have come forward to say that they will have a regulator."