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From http://rc.orissa.gov.in/index3.asp?linkid=30&sublinkid=219

PRESS RELEASE DT.28.05.2007(CM ATTENDS CONFRENCE ON POWER SECTOR)

GOVERNMENT OF ORISSA
PRESS RELEASE
New Delhi
May 28, 2007

Shri Naveen Patnaik, Chief Minister, Orissa today attended the Conference of Chief Ministers on Power Sector at Vigyan Bhawan. The meeting, which was chaired by the Prime Minister, broadly focused on accelerated capacity addition in the power sector, efforts to reduce Aggregate Technical & Commercial (AT&C) losses, ensuring greater competition to open access, rural electrification and energy conservation and efficiency.
Addressing the Conference, Shri Patnaik highlighted the fact that Orissa is the first State in the country to have undertaken reforms and restructuring of the power sector. It has nearly 25% of the total coal reserves of the country and has, therefore, a natural advantage for pit-head generation of power. The CM emphasized the point that the existing duty structure, however, does not provide any incentive to the power producing States. He urged upon the Prime Minister to have a legislation enabling the power producing States to levy duty on generation of power and provide the power producing States with concessional power. Further, suitable contributions should be made by Independent Power Producers (IPPs) for mitigating environmental hazards. Capacity addition should also be eco-friendly and aim towards clean and efficient power.

In order to add capacity, the Government of Orissa has entered into MoUs with 13 companies to set up thermal power plants in the State with a total projected capacity of about 17,000 MW. Besides private companies, 5 PSUs of government of Orissa have also drawn up plans
to set up power plants. He urged upon the Centre that coal blocks should be made available to all such power producers in the State.

He informed the House that the Government of Orissa has floated 3 Shell companies to set up mini ultra power projects. They are ready to select partners provided they are allocated coal blocks.

Shri Patnaik stressed that the aggregate technical and commercial losses (AT&C) cannot be reduced to the ideal level of 15% unless substantial investment is made in power infrastructure. He urged upon the Government of India to extend a special package of Rs.2,000 crore on the pattern provided to the State of Bihar for improving the transmission and distribution sectors. He said that it was ironical that the Government of India is talking about reforms in power sector and at the same time denying the legitimate incentive to the only State of the country which has completed the reform process.

CM further mentioned that the present regulatory framework puts a cap of 4 paise per unit for inter-State sale of electricity. The power producing States should be allowed to leverage their natural advantage and no artificial restrictions whatsoever should be imposed for the benefit of more prosperous consuming States. In the name of being consumer friendly, the rate of sale of power should not be such as to demotivate the power producing States.
Shri Patnaik stated that since as many as 50 lac households of Orissa do not have access to electricity, it was logical that the State should receive a substantial allocation of funds from the Rajiv Gandhi Gramin Vidyutikaran Yojana. Further, while States like UP have received Rs.2357 crore, Bihar Rs.852 crore and Uttaranchal Rs.337 crore, Orissa has got only Rs.67 crore under the RGGVY for only two districts out of the total of 30 districts in the State. There has been inordinate delay in implementation of the programme which has necessitated the new initiative of Biju Gram Jyoti Programme in Orissa.
He also stressed upon the fact that the norm of excluding habitations with a population of less than 300 will debar a large number of tribal hamlets from the benefit of RGGVY and requested that this decision may, therefore, be reconsidered and all habitations be covered under the scheme.