"The proposal regarding securitisation is pending with the ministry and the decision wll be taken by the new government," he said. In view of the urgent funds requirement of public-sector understakings, the securitisation deal will be finalised soon.

Baijal suggested formation of a special purpose vehicle (SPV) to carry out the securitisation plan. The SPV will take out Rs 7,000 crore outstandings with various SEBs for securitisation.

However, before taking a final decision, the govenment will have a relook at the market appetite for such papers, he said.

The funds raised through the SPV will be allocated to different PSUs on the basis of their need for future investment. "There cannot be any set formula for allocation of the amount," Baijal said, adding that the government has to decide on the basis of the corporate plans of different PSUs and the finance available to them from the budgetary allocations.

"Efforts would be made to recover the remaining outstandings of Rs 14,000 crore," he said. The PSUs are also asking SEBs to submit a mutually agreeable payment schedule for the pending amount and regularise future payments.

On the issue of power tariff, Baijal said that there were both financial and political compulsions to maintain the power tariff structure at a lower level. However, efforts should be made to bring down the cost in generation and distribution by adopting efficient technology and best practices.

Baijal said that the Electricity Regulatory Act has paved the way for setting up Centre and state electricity regulatory commissions (SERC). These independent bodies will help in lowering of power tariff at least for industrial consumers.

On the rights of state-level commissions, Baijal said the act spoke about two types of authorities. It provides mandatory powers as well as the rights that can be notified by the states.

Though SERC can achieve a great deal through the mandatory powers, it would be better if the state gives them other powers as well, he said. On being asked whether these commissions should have a right to open the power purchase agreements signed by the SEBs for independent power projects, Baijal said: "Though a legal document is a binding for both the parties, the authorities can open the agreement in case there is a serious probelm. It has been done even in the western countries," he pointed out.