There is hardly anything the power sector could ask for beyond what the Union Budget 2010 proposed for it. Allocation to the power sector was doubled to Rs 51 bn. To see to it that power generators do not delay their capacity addition due to unavailability of coal, the Finance Minister also proposed setting up a coal regulatory authority and launch competitive bidding for captive coal mining. The move has come to the rescue of the power sector, which is grappling with financial closure of key projects coupled with a delay in allocation of coal linkages.

Solar energy also found a special mention in the Union Budget. The government proposed to establish a national clean energy fund and is targeting to set up 20,000 MW of solar power by 2022. Allocation for renewable energy was increased to Rs 10 bn while a separate sum of Rs 5 bn was put aside for the setting up of solar and small hydro power units.

The fact that nearly 45% of the total outlay of US$ 488 bn planned for the Eleventh Plan period (2007-2012) i.e., US$ 224 bn is dedicated to investment in power sector projects speaks volumes of the Government's commitment towards the sector.
Power Finance Corporation limited continues to play a key role in the implementation of government policies and programs including the implementation of the Electricity Act. It will also continue to act as the nodal agency for the development of nine ultra mega power projects (UMPPs) in the country.