Shahi: Surplus solutions

New Delhi, Jan. 17: The power ministry has urged the state governments to invest more in setting up intra-state transmission systems to improve the flow of surplus power to those areas, which have a scarcity of the commodity.

Power secretary R. V. Shahi today urged the state governments to improve the transmission systems within the states and emphasised the need to build an extensive network.

Inaugurating the international conference on open access and transmission pricing in restructured electricity market, Shahi said the country is facing problems due to a mismatch between generation and transmission. He said the problem was acute in the northeast.

On the pricing of open access, the power secretary said the Central Electricity Regulatory Commission was examining the issue and the government would respond to resolve the problems associated with transmission and open access.

Under the open access regime, customers are free to buy power from vendors of their choice even though another company owns the electric wires to their houses. The main merit of this model is that it provides a better platform, which eventually helps to bring down the cost of supply. Power Grid Corporation of India chairman and managing director R. P. Singh said the government has opened up transmission for the private sector.

During the Tenth Five Year Plan, transmission lines worth Rs 31,000 crore will be set up, of which PowerGrid will carry out projects amounting to Rs 21,000 crore. The remaining Rs 10,000 crore worth of projects will be undertaken by private independent transmission companies and through joint venture with PGCIL.

Power IPOs

Power Finance Corporation has submitted its proposal for an initial public offering (IPO) and the government was examining it, Shahi said on the sidelines of the seminar. It has been circulated to the ministries and departments concerned and a final decision will be taken soon. He said there was ?no immediate move? by PowerGrid for an IPO.