Moily assures private power companies of addressing sectoral problems
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Moily assures private power companies of addressing sectoral problems

Last Updated: Friday, August 31, 2012, 20:00
 
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Moily assures private power companies of addressing sectoral problems
New Delhi: Power Minister Veerappa Moily on Friday assured private power producers that the government would take "quickest" possible decisions to address fuel shortages and other hurdles impacting the sector.

Speaking to reporters after meeting with more than 20 private power generators, including Reliance, Tatas, Adani, GVK and Lanco, Moily said various issues related to production, transmission and distribution of electricity were discussed. These include fuel shortages, pending distribution reforms and ways to increase overall generation capacity.

"We will ensure that the roadblocks are removed and will take quickest decision possible," the Minister said.

The delegation, which met the Power Minister, was led by Association of Power Producers (APP) Director General Ashok Khurana.

"The meeting was positive and good. He (Moily) has assured that time of committees has gone and would take quick action. He promised to take action on all the issues," Khurana said.

APP is a grouping of over 20 private power companies.

Regarding financing problems in the power sector, Moily said that he would discuss the issues with bankers. "Then, I will take it up with respective ministeries and ultimately with the Prime Minister wherever necessary".

Many banks are reportedly reluctant in extending credit to power projects apart from being apprehensive about the poor financial health of discoms -- which could result in defaults in the banking system.

According to Moily, private power producers also sought priority status for power plants when it comes to allocation of gas.

A slew of issues such as acute fuel scarcity, lack of regulatory clearances, poor financial health of distribution companies and tight credit flow for projects, are hurting the domestic power sector.

India has an installed generation capacity of over 2 lakh MW and in the 12th Plan period (2012-17), majority of capacity is expected to come from private players.

PTI



First Published: Friday, August 31, 2012, 19:57


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