Prabhu to seek Rs 30,000cr to improve T&D network

Our Infrastructure Bureau

New Delhi, Dec 3: The power ministry is planning to seek an additional Rs 30,000 crore fund support for strengthening the transmission and distribution network across the country over the next two-three years.

Speaking on the sidelines of the India Economic Summit here on Monday, power minister Suresh Prabhu said his ministry will shortly approach the Cabinet for an additional Rs 30,000 crore, which will be spent in strengthening the T&D network in 350 circles across the country.

Mr Prabhu said his ministry has already finalised a Cabinet note, which is currently being discussed with various ministries. “Soon after these inter-ministerial discussions, we will take this proposal before the Cabinet”, he added.

The minister emphasised that legislative changes alone will not suffice for bringing about reforms in the power sector and that ground level action is needed to achieve this. Giving details of the programme, he said while 50 per cent of this fund will be routed through the accelerated power development scheme (APDP), the remaining fund will be raised from multilateral agencies like the World Bank, financial institutions and banks. “Senior ministry officials have already held negotiations with the World Bank for funds to support such schemes. The bank has, in fact, expressed optimism over the project and has agreed to lend financial support for such schemes which they feel are bankable,” Mr Prabhu said.

Under the APDP programme which is already under implementation in 60 circles, each circle will be made a profit center with incentives for managers to recover costs. In addition to this, Mr Prabhu said his ministry is also finalising a minimum action plan for political parties to bring about reforms. “The draft of this plan is ready and has been circulated to all states,” he added.

He also spoke about the huge investment opportunities which existed in the transmission sector. “To support 1-lakh mw capacity addition, a transmission highway will costing be created at a cost of $20 billion with the support of both the public and private sector participation,” he said.