New Delhi, June 12: Having added just seven per cent of the targeted power generation capacity in the 10th plan, the Centre has stepped up pressure on the central PSUs and the states saying that work must commence on all the projects if the target is to be achieved. "We are in the second year of the 10th five year plan. I request the state governments to try to achieve their target of adding 11,000 mw by 2007. The projects, which have not yet taken off, work must start within few months," Union Power Minister Anant Geete told the state power ministers here. The power ministry has convened a conference to take stock of the situation on the capacity addition front especially in the backdrop of having failed to achieve less than 50 per cent of the target in the ninth five-year plan. "I know the financial health of almost all state electricity boards and this is really a matter of concern. The ministry of power has taken various initiatives in the recent past to improve SEBs' financial position. I hope all states make use of schemes like Accelerated Power Development and Reform Programme (APDRP) aimed at reducing the transmission and distribution losses," the minister said.
The new Electricity Act 2003 has also come into force, which has provision for handling of distribution business by the non-government organisations, cooperative societies and panchayats among others, Geete said, adding that this would bring in a positive change in the scenario.
On the availability of funds, Geete said the Rural Electrification Corporation (REC), which till recently was providing funds only for the purpose of rural areas, would start providing funds for the generation projects along with Power Finance Corporation (PFC). Bureau Report