KAYAMKULAM (KERALA), Jan 17: The Prime Minister A B Vajpayee today suggested tariff rationalisation in the power sector to make state electricity boards (SEBs) more viable and efficient.Speaking after commissioning a 115 mw gas turbine unit of the 350 mw Kayamkulam combined circle power project here, Vajpayee said financial ill-health of state electricity boards was the biggest problem in the country's power sector.``The financial ill-health of the SEBs is due to the gross subsidisation, poor economic efficiency, poor maintenance and poor collection of revenue," he said, adding, ``Power tariff of SEBs does not cover the cost of generation, compelling industries to resort to captive generation.'' SEBs lost more than Rs 6,000 crore annually. "How long can we continue like this?" he questioned.He wanted state governments to ensure SEBs improved their functioning by providing adequate and quality power to people. `Farmers are willing to pay reasonable tariff provided they are assured of adequate andquality power', he said.Vajpayee said according to the India infrastructure report, the country would need 1,11,500 mw power in the next 10 years, requiring an investment of Rs 6,24,400 crore. The only way this could be afforded was to make all consumers pay their due share. Stressing the need for urgent steps to improve transmission and distribution (TD) systems to reduce losses, he said the losses India were 20 per cent compared to the 10 per cent world average.States that have begun to carry out these reforms were beginning to benefit. Orissa, for instance, had reduced the losses by 10 per cent after the SEB was corporatised, he said. The prime minister expressed the hope that other states too would follow suit so it could go a long way in solving the problems in the power sector. Hinting at a new energy policy, he said the states and Centre had to work out the total energy requirement in an integrated manner as a prelude to the formulation of an energy policy.Vajpayee said the state governmentsshould participate actively in efforts to tap non-conventional energy sources in a big way. Wind-energy based projects alone could generate 20,000 mw, while 10,000 mw could be generated from small hydro-power and 17,000 mw from biomass energy. Non-conventional energy was a key sector as over-dependence on hydrocarbon fuels was not in the long-term interest of the country, he noted.Commending the National Thermal Power Corporation (NTPC) for completing the work of the 115 mw unit four months ahead of schedule, Vajpayee said time-bound project implementation should be the norm rather than the exception in public sector undertakings.``India has neglected the problems in the power sector for too long and the price we are paying for the neglect is very high,'' he said, asking state governments to make a departure from the past in the power sector. The BJP government had taken steps to initiate reforms in the power sector with the involvement of the states by drawing a 12 point action plan, he pointedout.Union power minister Rangarajan Kumaramangalam said global tenders would be floated this week for a mega power project, with a capacity of 1000 mw to 1500 mw, at Cuddalore in Tamil Nadu. He said advertisements inviting global bids for the project would be released by January 20. About NTPC, he said its total installed capacity would go up from 17,000 mw to 30,000 mw by 2000 AD. The Power Grid Corporation was also taking steps to strengthen transmission system to cope with the future demand.
