New power policy

Journal Article · Tue Apr 01 04:00:00 EST 1997 · Independent Energy

OSTI ID:569714

Sahai, I M ^[1]

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1. ed.; Power Finance Corp., New Delhi (India)

The federal government in India announced in December 1996 its policy for the Indian power sector, including the scope for further private investment. Called the Common Minimum National Action Plan for Power (the Plan), it was announced less than six months after the new government took office in June 1996. The Plan`s draft was formulated after extensive discussion between the federal and state governments, including two meetings with the state chief ministers and consultations between the 13 political parties which form the ruling coalition at the federal level. Not all suggestions found favor, and only those on which there was a broad agreement or consensus were included, hence the Common Minimum Action Plan. The Plan builds on the policies of the previous government, combined with the recent experience and the feedback the government received from various players in the field, including independent power producers (IPP), financial institutions and multilateral institutions. The Plan follows up on the policies already under implementation. It was clear that to get adequate response from private promoters, power sector reforms - structural and operational - were needed. The difficulties faced by IPP`s in project approval will be tackled through simplification of the procedures, delegation of power from federal agencies to state government and better fuel linkage for thermal plants. There is an emphasis on better use of installed capacities and on faster-track projects. Priority will be given to hydropower, though a detailed policy must evolve. The northeast region, with considerable hydropower potential, will be given special attention. The entry of private investment in the power sector will be carried forward allowing participation in transmission and distribution, too.

• OSTI ID: 569714
• Journal Information: Independent Energy, Journal Name: Independent Energy Journal Issue: 3 Vol. 27; ISSN 1043-7320; ISSN IDPEEW
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
BUSINESS
ENERGY POLICY
INDIA
INVESTMENT