Addressing a press conference here, he said his ministry felt that naphtha-based power projects would not be economical in the light of the price hike and hereafter the NTPC could go ahead with alternative fuel for its power projects namely natural gas, and liquefied natural gas (LNG).Replying to a question, he said 14 state electricity boards in the country had formed their own state electricity regulatory authorities as per the directions given by the ministry.

He said a CBI probe had been ordered to ascertain the role of Central Rural Electrification Corporation (REC) officials in the alleged Rs 2000 crore rural electrification scam in Bihar.

While over 14,000 villages, which were declared electrified in Bihar, were found to be without electricity, another 3000-odd villages were found wrongly declared in Bihar. Such big fraud could not have taken place without the knowledge of the REC and state electricity board officials, the minister said.

Stating that the Centre had approved a Rs 1,500 crore modern electrical distribution system, to be introduced in new Delhi, Ahmedabad, Lucknow, Hyderabad, Bangalore, Chennai and Tiruchirapalli in two phases, Kumaramangalam said the Power Grid Corporation of India and the respective state electricity boards would jointly implement the project.

The Power Grid had already signed an MoU with a Swedish-firm for technical collaboration in this regard. He said the first phase of the power project would be completed within two years from the date of commencement and the second phase within three years. A meeting of a high-level crisis resolution group to ease the existing problems relating to power generation and supply in Tamil Nadu would be held at Chennai on December 4. Chief minister M Karunanidhi would take part in the meeting.