Power sector to grow at 8 per cent ; push up GDP growth : Moily
Debt Restructuring Plan for Discoms soon
Union Power Minister Mr. Veerappa Moily has said that the country’s GDP growth will soon return to 9 per cent, as the power sector is all set to deliver a good performance. Addressing a press conference in Mumbai, after holding a review meeting with the Maharashtra CM, Mr. Prthviraj Chavan, Mr. Moily said “If you want 9 per cent GDP growth, you ought to produce 8 per cent of power and if you aspire 10 per cent GDP growth, your power production should be at 9 per cent “
The Power Minister said that during the 11th plan period 54,000 Mw of power was added and the target for the 12th Plan is 84,000 Mw. He said approximately 60 per cent of the power produced is thermal and added that the CAG report will have no bearing on coal availability to meet the target, as coal linkages have already been made. “Any de-allocation will have bearing on future power production targets in the 13th Plan” he added.
Debt Restructuring Plan
Mr. Moily also announced that the Centre has prepared a ‘Debt Restructuring Plan’ for the State Electricity Distribution Companies, which have run up combined accumulated losses of approximately Rs 2,00,000 crores. He said the Plan will soon come up before the Cabinet, and once approved, will help make the Discoms financially viable. “It will not be a bailout package,” Moily said on the sidelines of an industry meeting. The restructuring will involve modifying the repayment schedule of debt owed by state electricity boards, he said.
Union Power Minister complimented Maharashtra for reducing the electricity distribution loss from 26% to 17%. He said the state’s electricity deficit is little over 6 per cent is below the national average. Mr. Moily assured Maharashtra Chief Minister Mr. Prithviraj Chavan, that the issue of gas availability for the Dabhol and Uran plants would be looked into by an Empowered Group of Ministers on priority.
Mr. Prithviraj Chavan appraised the Minister of steps being taken by his government to reduce power losses and improve tariff collection. He said, if things go as planned, Maharashtra could become ‘load shedding free’ state by December 2012