Govt looking at stimulus package for power sector

But Mr.Prime Minister, what about a similar package for the Information Technology (IT)/Software Sector??

Mumbai: A stimulus package is being looked at by the Union government to help the power sector, including easing of funding for private sector projects, union minister of State for Power Jairam Ramesh said.

"We are looking at a package, if need be, to liberalise on financing as far as private sector producers are concerned. If we see a high mortality of projects, we will ensure thatpower projects will be implemented," Ramesh told reporters in Mumbai.

The Government is meeting with private sector power producers in this regard, he said.

Ramesh said there doesn't seem to be much of an adverse effect on the industry due to the economic meltdown.

"There doesn't seem to be much of an adverse effect on the power sector. If there are diffuculties - and the difficulties will not be faced by the 11th (Five Year) Plan power projects, but by the 12th Plan power projects - we will look at a package to help them out," the minister said.

In the 11th Five Year Plan, the target capacity to be added was 79,000 mega watts, he said. "Of this, roughly 20 per cent is in the private sector, which seems broadly on schedule," Ramesh said, adding that India has done well by commissioning 18,000 mw in the first two years of the 11th Plan (from 2007-2011).

He said that of the 79,000 mw target, orders have been placed for 72,000 mw.

"I don't see any 11th plan project getting delayed. In the 12th Five Year Plan, aggressive expansions may have to be re-looked," Ramesh said, adding that the government will help expand availability of finance to players in need of it.

Brushing aside fear of project delays, Ramesh said the 4,000 mw Mundra power project is very much on schedule.

"In the other UMPPs (Ultra Mega Power Projects), Sasan and Krishnapatnam are in the pipeline. There are land acquisition issues there, but a financial closure does not seem to be a binding constraint," he said.

Ramesh said the only power projects that have been put off, are some "related to the Nagothane expansion of Reliance Industries, which has been put on hold for the time-being."

Projects by private players like GMR, Jindal, GVK and KSK are on track, he informed.

The minister said India may go in with France and install two units of a 1,600 MW of EPR (European Pressurized Reactor) at Jaitapur, Maharashtra.

"The French have been keen on Jaitapur for locating the EPR. If and when, we decide to go in with France, it will be for two 1,600 mw of EPR reactor," he said, adding that site selection and analysis have been done and the final environmental clearance is being awaited for the UMPP.

Final bids for the fourth UMPP in Tilaiya will be opened on Tuesday, he said. ADA Group, NTPC, Lanco, Sterlite and Jindal Steel and Power have are the bidders here.

The minister said he hoped that the next UMPP comes up in Maharashtra.

On Fuel Supply Agreements, he said, "There are lots of issues on the FSAs that are being discussed. We have not yet been able to clinch an FSA. There are differences between the coal companies and the power producers and we are trying to work out a compromise. That is going to take a little time."

He said coal companies are not in a position to give FSAs for more than five years, while power producers want it for a period of 20 years.