This was announced by Union power minister Suresh Prabhu on Monday at a meeting attended by various state electricity board (SEB) chiefs and independent power producers (IPPs), besides heads of central power utilities.
Central power utilities, including the National Thermal Power Corporation (NTPC) and National Hydroelectric Power Corporation (NHPC), would contribute more than 50 per cent of the total capacity at 22,832 mw, while the state sector capacity addition target has been fixed at 11,100 mw. The capacity addition from the private sector has been pegged at over 7,000 mw during the Plan period.
In order to ensure that capacity addition targets do not meet the same fates in the Eighth and Ninth plans, Mr Prabhu has called for an effective monitoring system of each and every project implementation agency. Speaking on the financial resources, the minister said public investment would be the main source of funding and pointed out that plan outlay has been hiked by 270 per cent for the current financial year.
Mr Prabhu said that the required structural changes have been introduced from time to time in an effort to make the sector commercially viable.
He said that most of the states have already signed tripartite agreement with CPSUs and government for clearing the past dues and have evolved a mechanism for future payments to the generation companies.
This is the only way, we can turn the Indian power sector into viable and lucrative investment, he added.
The power minister said the new Electricity Bill was expected back from the parliamentary standing committee soon and hoped it could be tabled in the Parliament in the coming session.
In his address, power secretary RV shahi said that states would be able to access the funds provided by Power Finance Corporation (PFC) if they are able to improve their financial performance in the next four years from now. This is the maximum time which can be given to the electricity boards for their revival, he said.
Mr Shahi said that along with PFC, rural electrification corporation (REC) would also help the generation companies, especially states by raising money from the market to meet the targets.
The minister said that a 3-tier monitoring and review system has been put in place. Annual meeting with all the SEBs, CPSUs and IPPs and quarterly regional meetings and weekly internal review meeting of the ministry would start soon.