Moreover, the chief ministers have also agreed to de-politicise the power sector reforms and to adopt a common agenda across party lines for speedy implementation of power sector reforms at the state level.

For adopting a common line on power reforms, the Prime Minister Atal Bihari Vajpayee has agreed to convene an all-party meeting attended by the leaders of opposition in state assemblies also.

Disclosing this at a news conference following the chief mninister's conference on power sector reforms on Saturday, Union Power Minister, Suresh Prabhu said the Centre would fully support the states in their reform efforts.

"In addition to the expert committee to be constituted for working out instruments for one-time settlement of SEBs dues, it has also been agreed in Saturday's conference that a high-level empowered group comrpising of state power ministers and chief ministers would co-ordinate, monitor and review implementation of reforms," he added.

According to Mr Prabhu, all states have agreed to attain commercial viability of the state electricity boards (SEBs) in two years' time.

Towards this, each state will follow different routes such as creating profit centres with full ccountability, by handing over of local distribution to panchayats/local bodies/users associations etc or by privatisation of power distribution. Mr Prabhu said there cannot be a single model for every state and the mode they choose to attain commercial viability can vary from state to state.

The states have also given their consent on completing rural electrification by 2007 besides full coverage of all households by 2012. It was also agreed that electrification of remote villages in the states would need a specail mode of financing including an element of grant.

"The states have also agreed that State Electricity Regulatory Commisions (SERC) be made functional in the next six months and that tariff orders issues by the commissions are fully implemented by all states," added Mr Prabhu.

Moreover, a consensus was also arrived at over the issue of subsidies, which will now be given only to the extent of state government's capacity to pay subsidies explicitly through Budget provisions.

In reforming distribution, the chief ministers agreed on setting up and operationalising an effective management information system besides achieving the project of full metering of all consumers by December-end, Mr Prabhu said.

On the issue achieving financial closure of independent power projects, power secretary AK Basu said states and financial institutions were working out an alternative package for security to achieve quick closure of viable projects.

The alternate package includes achieving of specific milestones by the states including 100 per cent metering and commercial viability within two years.