Open bids in 6 months to plug power shortage

NEW DELHI: States would invite open competitive bids for procuring electricity in the next six months to bridge supply shortfall. This was one of the key steps that the Centre and the states agreed upon on Tuesday to improve the country's power situation.

After a day-long brainstorming session with minister of state for power Jyotiraditya Scindia, energy ministers of states agreed to draw up plans for procuring about 90% of their power requirement through long-term or medium-term agreements.

But fuel remained a concern with the state energy ministers who sought augmentation of coal and gas supplies through increased indigenous production and a suitable policy framework. About 8.700 mw generation capacity is idling in the absence of affordable gas supplies.

Haryana raised the issue of low coal supplies to power plants in the state, while Gujarat faulted the Centre's coal mine allocation policy. Gujarat's energy and petrochemicals minister Saurabh Patel said the state was paying over Rs 2,200 crore in freight as the Centre had allocated coal for the state's power plants from faraway states rather than nearby Western Coal Fields.

The sixth meeting of the state energy ministers also decided that the state governments would ensure the accounts of the utilities up to 2011-12 are audited and finalized by March, and in future the accounts of a financial year are audited by September of the following financial year as per the Companies Act.

States would ensure that discoms file multi-year tariff petition and that SERCs (State Electricity Regulatory Commission) announce multi-year tariff as per the National Tariff Policy.

Last September, the Cabinet had approved a Rs 1.9 lakh crore debt restructuring package for the power discoms. Under the scheme, half of the short-term outstanding liabilities would be taken over by state governments. The balance loan would be restructured by providing moratorium on principle and best possible terms for repayments.

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