‘Private investment in power sector likely to hit’
Tribune News Service

Chandigarh, July 15
The Apex Chamber of Commerce and Industry, Punjab, yesterday said private investment in the power generating sector was likely to take a hit as some states across the country were blocking efforts by the power generators to sell power outside the boundaries of their states.

PD Sharma, president of the association, said Punjab was likely to face a grim situation because of this development. “Punjab purchases power from different states to the extent of 2,000-3,000 MW. This purchase is worth around Rs 5,000 crore. Punjab produces only 3,000-3,500 MW. Thus, Punjab depends on outside power to the extent of 50 per cent of its requirement,” he said.

He added that the Central Electricity Regulatory Commission (CERC) has observed that if left unchallenged, this tendency could be disastrous. “The CERC has urged the Central Government to take urgent steps for moving the Supreme Court against the moves of some states. The investment in the private sector of power generation will be hit hard,” he pointed out.

Sharma said various provisions of the Electricity Act, 2003, gives state governments extraordinary powers to prevent export of power outside the states. “Punjab mostly depends upon power from other states. If this tendency is not checked, Punjab will be in trouble. So can be the case for many other states. Punjab is not likely to get its own power in the near future. For the time being, the orders issued by some states are restrictive to prevent captive units and private plants from selling electricity outside the state on the grounds that there is a power deficit,” he said.

US Exim to guarantee loan for R-Power project

Washington, July 15
Responding to green commitment from Reliance Anil Ambani group, the US Exim bank today gave a preliminary approval for $600 million in loan guarantees to the supplier to Rs 20,000-crore power project at Sasan in Madhya Pradesh.

The proposed estimated Rs 2,800 crore loan guarantee will support the sale and export by US firm Bucyrus International.

The approval would result in saving about a 1,000 jobs in the US. Jobs are believed to have been behind Exim Bank's reversal of earlier decision of rejecting the arrangement.

"This transaction was also made possible because of Anil Ambani's leadership and vision in diversifying Reliance Power's production portfolio of energy projects in India," Exim bank chairman and president Fred P Hochberg said soon after a Board meeting. — PTI