No respite for coastal power developers: Shinde

New Delhi, Dec 6 (IBNS) There will be no relief for existing coastal power project developers including Ultra Mega Power Projects (UMPP) due to hike in prices of imported coal from countries like Indonesia and Australia, said Union Power Minister Sushil Kumar Shinde at an ASSOCHAM conference on Tuesday.

"However, the government will initiate some corrective measures to reduce the burden on the consumers resulting from the enhanced price of imported coal," said Shinde while addressing a conference titled 'Distribution Reforms In Power Sector' organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

"We have added over 60,000 mega watts (mw) of power during the course of over past five years and synchronised a capacity of about 16,000 mw. Over 12,000 mw of capacity was commissioned in 2010-11, the highest capacity addition in a single year," said the minister.

"Contribution of private sector in capacity addition was a meager 10 per cent at the end of the 10th five year plan and has gone upto about 36 per cent and the government is hoping for over half of investments in power generation to come from private sector during the 12th Five Year Plan," said Shinde.

"Mere unbundling of power utilities will not be enough for improved performance. Effective corporate governance and professional working of commercial entities are also necessary to ensure better results," said Shinde.

The minister also said that for development of electricity distribution sector, the DISCOMS are being encouraged to use IT for energy audits and accounting to carry out system strengthening and technological upgradation of distribution network to control power pilferage and theft.

The AT&C losses have been brought down to the levels of about 27 per cent as in 2009-10 from nearly 39 per cent in 2001-02. They are further likely to drop to about 15 per cent with applications of modern technology. For this, the government has launched Restructured Accelerated Power Development and Reforms Programme (R-APDRP), said the minister.

"The accumulated losses of discoms reached about Rs 70,000 crore in 2008-09 and may cross Rs 1 lakh crore in the next two years if adequate steps are not taken," said Satish Jindal, co-chairman, ASSOCHAM National Council on Power.

"Continued unviability of the distribution segment reflected in very high transmission and distribution losses is a major problem in the domestic power sector," said R.N. Dhoot, president-elect, ASSOCHAM. "A robust and competitive environment is imperative for sustainable development of the power sector."

Among others who spoke during the conference were: Gopal Saxena, CEO, BSES Rajdhani Power Limited; K. Raja Gopal, CEO, Lanco Infratech Limited; Pramod Deo, chairperson and CEO, CERC and D.S. Rawat, secretary general of ASSOCHAM.