States will invite bids for power to meet demand

New Delhi, Feb 5 (IANS) States will invite bids for procuring electricity to bridge the gap in demand and supply in the next six months, the government said Tuesday.

It is part of a package of measures power ministers of states and union territories resolved to adopt to improve the country's power situation after a meeting here with union Power Minister Jyotiraditya Scindia.

A power ministry statement said the states will now invite bids for procurement of power to meet the uncovered gap in demand and supply within the next six months through Case I bidding.

Case I is an open bid where the developer has to decide for fuel and location and compete against any other developer.

"State governments would prepare plans covering generation and transmission infrastructure for all time horizons and would procure about 90 percent power of their requirement under long-term or medium-term agreements," the statement said.

Earlier, briefing media persons on the progress of the financial restructuring programme (FRP) for distribution companies (discoms), Scindia said 5 out of seven "focus" states had agreed to take part in the scheme.

"Five states are already on board (the FRP). Their total short-term liability is close to Rs.120,000 crore. We are speaking to the finance ministry for the approvals so that in the near future, next week, we'll be able to take it forward," Scindia said.

Tamil Nadu, Andhra Pradesh, Rajasthan, Haryana and Uttar Pradesh are the states which have commited to the FRP.

In September last year, the Cabinet approved the restructuring package for discoms' debt burden, which stood at a staggering Rs. 246,000 crore at end of March 2012.

Under the scheme, 50 percent of the short-term outstanding liabilities would be taken over by state governments. The balance 50 percent loans would be restructured by providing moratorium on principal and best possible terms for repayments.

The 6th conference of power ministers of states and UTs deliberated several issues regarding providing affordable and adequate power to consumers and making electricity accessible to all, particularly in those areas that are not connected with the grid.

It was also decided that the state governments would ensure the accounts of the utilities, up to 2011-12, are audited and finalised by March 2013, and in future the accounts of a financial year are audited by September of the following financial year as per the Companies Act.

States would ensure that discoms file multi-year tariff petition and that State Electricity Regulatory Commissions (SERCs) announce multi-year tariff as per the National Tariff Policy.

Matches

MORE TOP STORIES TODAY

Kolkata bowling vs Bangalore batting might

Kolkata bowling vs Bangalore batting might

The likely return of Gayle will boost Bangalore, but the result could be determined by Kolkata's bowlers. More »

Gambhir a knock away from striking form - KKR coach

Gambhir a knock away from striking form - KKR coach

Gautam made an eight-ball duck in the opening game against Mumbai and in the second game against Delhi, he lasted only half those balls. More »

Jadeja spins out Rajasthan in close chase

Jadeja spins out Rajasthan in close chase

IPL 7, GAME 10—Chennai beat Rajasthan by 7 runs after last-over scare. More »

April 24: A legend is born

As Sachin Tendulkar turns 41 - here's a look at some offbeat moments from the Master Blaster's innings. More »

Cleaning up the game starts with fans

Cleaning up the game starts with fans

... because, as recent events reveal, the BCCI has little intention of doing it. More »

Rivals say Srini group delaying BCCI special general meeting

Rivals say Srini group delaying BCCI special general meeting

The group opposed to Srinivasan alleged that since BCCI secretary Sanjay Patel belongs to the president’s group, he was intentionally delaying the SGM… More »

Vithanage, Priyanjan get T20 call-ups

Vithanage, Priyanjan get T20 call-ups

Herath has been rested, while the team will be without the veteran pair of Mahela Jayawardene and Kumar Sangakkara, who retired from T20 internationals… More »

SL in 'difficult place' after Farbrace exit

SL in 'difficult place' after Farbrace exit

Sri Lanka depart for assignments in Ireland and England in two weeks, and Sanath Jayasuriya suggested Marvan Atapattu would be interim head coach for those… More »

Farbrace is England's assistant coach

Farbrace is England's assistant coach

The ECB continued the restructuring of the England coaching set-up on Wednesday by announcing the appointment of Paul Farbrace as assistant coach. More »

Chandimal axed as T20 captain

Chandimal axed as T20 captain

Sri Lanka's cricket selectors on Wednesday sacked Dinesh Chandimal as Twenty20 captain and replaced him with Lasith Malinga, while Angelo Mathews was… More »

'BCCI should have picked panel with care'

'BCCI should have picked panel with care'

Dalmiya said that it was the first time that the BCCI had been faced with a situation where the apex court had hauled up the Board and it should have acted… More »

SC asks Mudgal committee to continue

SC asks Mudgal committee to continue

Mukul Mudgal has communicated to the court his willingness to take up the investigation and has been asked to specify the terms and modalities on April… More »

Sri Lanka players resolve pay dispute

Sri Lanka players resolve pay dispute

The pay dispute between Sri Lanka Cricket and its 13 contracted players ended on Wednesday when the latter agreed to accept 10 percent of the participation… More »

Hope to be fit for next game - Pietersen

Hope to be fit for next game - Pietersen

With two heavy defeats at the hands of Bangalore and Chennai, Daredevils currently languish near the bottom of the table. More »

'SC decision could hurt BCCI's status'

'SC decision could hurt BCCI's status'

The Supreme Court prefers that the Justice Mudgal panel further investigate the IPL corruption scandal. More »

Mudgal panel drops bombshell in court

Mudgal panel drops bombshell in court

The Mukul Mudgal probe committee dropped a bombshell in the Supreme Court on Tuesday by making a sensational claim that it was forced to stop audio recording… More »

Perfect Punjab trounce Hyderabad

Perfect Punjab trounce Hyderabad

IPL7, GAME 9—Maxwell (95, 43b), Balaji (4-13) set up 72-run win. More »

Have the ECB played an unfair game?

Have the ECB played an unfair game?

Money talks, but it is in light of this ICC shakeup that the ECB's act of soliciting of another team's coach deteriorates from free-market aggression to… More »

Farbrace quits for England post

Farbrace quits for England post

He will assist Peter Moores who was unveiled as the new England coach on Saturday. More »

Moin appointed to manage Pakistan team

Moin appointed to manage Pakistan team

Pakistan on Monday reappointed Moin Khan as chief selector and manager of the national team, a week after fellow former captain Rashid Latif turned down… More »

Chennai smash Delhi for first win

Chennai smash Delhi for first win

IPL7, MATCH 8—Raina-led middle order, superlative catching give CSK a 93-run win. More »

'BCCI reputation lowest in 80 years'

'BCCI reputation lowest in 80 years'

The former BCCI president says he was "disillusioned" by the happenings at the emergent working committee meeting on Sunday. More »

Injured Bravo to miss rest of IPL

Injured Bravo to miss rest of IPL

Dwayne Bravo is set to be sidelined for at least four weeks due to a shoulder problem. Bravo sustained the injury when attempting a catch on the boundary… More »

NZC contemplates domestic revamp

NZC contemplates domestic revamp

New Zealand Cricket has put forward a proposal to reinvent its domestic structure and allow up to 49% private investment into the six major associatio… More »