Having set an ambitious target for capacity addition, the power ministry on Monday sought to push ahead with the agenda seeking regulators for coal and petroleum sectors even as it criticised public sector power companies for their inability to deploy funds reserved for them.
Speaking at a national seminar on regulatory framework in New Delhi, power secretary R V Shahi said organisations were unable to spend funds set aside for them.
Reeling out statistics, he said government had set aside Rs 14,000 crore (Rs 140 billion) as equity support for National Hydel Power Corporation during the current plan, up from Rs 4,000 crore (Rs 40 billion) during the Ninth Plan. Similarly, Rs 3,000 crore (Rs 30 billion) has been provisioned for NTPC, he added.
Shahi said tremendous efforts were needed from PSUs to ensure projects were implemented, which required proper award of contracts among other things.
"We are after them to use whatever is provided. We would be happy even if they spend 95 to 98 per cent of the funds," he added.
Shahi sought a convergence of government policy and regulatory approach to reduce over dependence on public resources arguing government would be unable to support such expenditure over the long run.
On the issue of regulators, Shahi said the power ministry had written to the petroleum and coal ministries for setting up separate regulators for the two sectors.
This would check fuel costs and ensure completion of fuel linkages.
© 2025