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Monday, July 16, 2012

Planning Commission to meet state power ministers tomorrow
NEW DELHI: The Planning Commission has called a meeting tomorrow of state power ministers to address issues such as fuel shortages facing the sector and the weak financial health of distribution companies.
Planning Commission Member (Energy) B K Chaturvedi will head the meeting and is likely to discuss these issues that are hampering the growth of the crucial sector with the state power ministers, according to an official.
Banks and financial institutions are shy of lending to power projects due to constraints like fuel supply shortage.
The meeting is also likely to review the status of the proposals made during the previous conference. Last year, at a similar meeting, the government underlined the need for urgent steps to reverse losses in the power distribution companies.
It was decided that state governments would ensure that the accounts of the utilities are audited up to the year 2009-10. They were also to ensure that the accounts of a financial year (April-March) are audited the following September.
Currently, the Power Ministry is working on rejigging discoms' debts of about Rs.2 lakh crore. As per proposals, 50 per cent of the total amount would be converted into bonds -- that would be issued by the respective state governments -- while the remaining debt would be restructured.
Besides, discoms were to take steps to reduce AT&C (Aggregate Technical and Commercial) losses to less than 15 per cent by administrative measures. 


Courtesy: The Economic Times
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