IACC president Ravi Wig said at a seminar that though there have been success stories such as Enron in the power sector, at the same time, there are cases like Cogentrix whereby the confidence of the prospective investors was shaken considerably.

IACC has also stated that complete project clearances should be granted before the project is offered to the foreign investor so that projects are bankable. It has urged the government to announce special incentives for hydro-power generation. Power Trading Corporation's chairman TN Thakur said that PTC was considering grants to state governments for setting up distribution network and management centres.

Power ministry's special secretary SS Sharma said that the progress on the foreign direct investment front in the power sector has not been as meagre as it is often made out to be. He said that around 24 projects have already been constructed in the recent years of which four are under US-India partnerships.