Budgetary allocation for power sector doubled
The government in its general budget has doubled allocation for the power sector. The finance minister Pranab Mukharjee while presenting the budget for 2010-11 said the power sector will receive Rs5,130 crore against the previous year’s (2009-10) allocation Rs2,230 crore. However, the amount does not include allocation for Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY).
Mr Mukharjee said the government accords the highest priority to capacity addition in the power sector. “The framework for induction of super critical technology in large capacity power plants of the National Thermal Power Corporation is now in place. The Mega Power Policy has been modified is now consistent with the National Electricity Policy, 2005 and Tariff Policy, 2006,” he said. This, the Finance Minister added, would help in lowering the cost of generation and cost of power purchased by the distribution utilities.
The total outlay for the Ministry of Power is Rs60,751.42 crore. The government made provisions mainly for schemes pertaining to NHPC – Rs781 crore; Energy Conservation – Rs.143.94 crore; Bureau of Energy Efficiency – Rs66.92 crore; RGGVY – Rs5,500 crore, Restructured Accelerated Power Development Reform Programme – Rs3,700 crore and interest subsidy on National Electricity Development Fund – Rs227.64 crore.
The government said the total outlay for Nuclear Power Scheme would be Rs4,739 crore. The Plan outlay consists of Rs1848 crore by way of budgetary support and Rs2,891 crore of IEBR.