Power projects: Focus on faster implementation

New Delhi: The Finance Minister, Mr P. Chidambaram, announced a restructuring of the ongoing Accelerated Power Development and Reforms Programme (APDRP), along with a 23 per cent hike in allocation for the scheme in 2007-08.

In light of the slippages in capacity addition targets during the current Plan period, faster implementation of the new ultra mega power projects (UMPP) and the setting up of merchant power stations was stressed upon.

Announcing the proposals, Mr Chidambaram said that since the APDRP has 'significantly' reduced aggregate technical and commercial losses in 213 towns, the project was being restructured to cover all district headquarters and towns with a population of more than 50,000.

'I propose to increase the budgetary support for APDRP from Rs 650 crore in 2006-07 to Rs 800 crore next year,' he added.

Noting that two UMPPs have already been awarded, Mr Chidambaram said that seven more were under process and at least two more would be awarded by July.

The Ministry of Power would also facilitate the setting up of merchant power plants by private developers and private participation in transmission projects, he added.


Reacting to the proposals for the sector, Mr Ravi Uppal, Vice- Chairman and Managing Director ABB India, said: 'The added impetus to APDRP, rural electrification and implementation of ultra mega power projects are welcome steps. But on the whole, perhaps more could have been done with regards to infrastructure and the manufacturing sector.'

According to Mr Rajendra Singh, Chairman, Power and SEZ, D S Constructions Ltd: 'It was expected that Budget would have provided greater emphasis and incentives for faster growth of Infrastructure. Allotment of coal blocks needs to be made more liberal to address the woes of the power sector. At the same time, a policy framework was expected for accelerated growth of hydro power.'