According to Mr Prabhu, the National Grid would make it possible to set up power stations as per the availability of the fuel feedstock in the particular region, and also chalk out an efficient plan for distribution of power to other states. The minister said that the investment for the improvement of transmission system all over India would be around Rs 80,000 crore and it would be raised through diversification, joint ventures (JV), and floating bonds in the domestic and international market. He said the power ministry was in talks with three international companies to participate in the joint ventures with PGCIL in this regard. PGCIL chairman and managing director RP Singh said that its equity in the proposed venture would be restricted to 26 per cent (Rs 500 crore) in a bid to maintain the voting rights. "The JV company would work on providing the gateway and laying cables for increasing international connectivity," he added.

Mr Singh said that the company has already got a credit of $250 million from the Asian Development Bank and Rs 120 million as additional commercial loans from financial institutions. Expressing serious concern over the mounting T&D losses of state electricity boards, Mr Prabhu said that the government has embarked upon an investment plan of Rs 40,000 crore, spanning three years. He added that a bill would be introduced, whereby a cognizable offence would be registered against those involved in power thefts and pilferage. Mr Prabhu announced that the Centre would allot Rs 2,000 crore under the Accelerated Power Development Programme (APDP) to all states on an annual basis, half of which has been sanctioned by the Cabinet and the rest would be leveraged by loans from the Power Finance Corporation or other financial institutions. He added that the Centre would also release Rs 9,000 crore in three years allocation under the tenth and eleventh plan schedule.