Common Minimum Programme on Power
The Minister of Power, Suresh Prabhu has circulated a draft document on a "Common Minimum Programme on Power" to leaders of all political parties. In his letter the Minister of Power has said he has been in constant touch with leaders of political parties, Members of Parliament (MPs), Trade Union Leaders and other stake holders, ever since the Prime Minister held a meeting with Chief Ministers regarding Power Reforms in March 2001. This meeting had resolved that "… there is an urgent need to depoliticise power sector reforms and speed up their implementation. For this purpose, an all-party consensus needs to be created."
Prabhu said that based on discussions with leaders of political parties, MPs, Trade Union Leaders and other stakeholders, he has now prepared a draft document on "Common Minimum Programme on Power." The Minister has requested feedback so that with the support of all, an agreed declaration on power could be adopted, as this is necessary, if this critical infrastructure is not to adversely effect economic performance and efforts to eliminate poverty.
The draft document says that political parties signatory to this declaration agree on the following Common Minimum Programme on Power:
· Every Indian has a right to uninterrupted and quality power supply at affordable rates.
· The work of extending electrification needs to be accelerated so as to complete:
· Electrification of all villages by the end of 10th Plan, 2007.
· All households by the end of 11th Plan, 2012.
· State Governments cannot afford to supply free power.
· Electricity rates may be determined by independent Regulatory Commissions.
· Power supply may be given at subsidized rates to targeted groups only to the extent that the State Governments can afford to provide subsidies through the Budget for this purpose.
· The real problem of management and the challenge of power sector reforms lies in the distribution sector where:
· All consumers need to be metered.
· Power theft has attained alarming proportions. Immediate steps need to be taken to eliminate theft.
· Technical losses need to be reduced.
· Energy audit and accountability at the local level have to be ensured.
· Commercial viability needs to be achieved in the next 2-3 years through any or all of the following:
· Creating Profit centres with full accountability.
· Handing over of local distribution to Panchayats/Local Bodies/Franchisees/Users Associations, wherever necessary.
· Privatisation of distribution.
· Or any other means.
· State Governments may evolve their own path of reforms to suit their specific conditions.
· Only commercially viable distribution can sustain and attract the investments required in the sector.
· Public Sector investment in the center as well as in the states may be stepped up to ensure that in the 10th Plan the country is free of power shortages. This is critical for the Indian economy in the new globalised environment.
· An effective programme for conserving energy through energy efficient lighting, pump sets and other equipment needs to be implemented with urgency.
· Power sector is in a critical situation and reforms need to be undertaken to achieve the above objectives. Power Sector reforms need to be depoliticised in order to facilitate their speedy implementation.
