Krishna reiterates tough stand on power thefts

By Our Special Correspondent

BANGALORE, JULY 21. The Chief Minister, Mr. S.M.Krishna, said here on Saturday that the Government was contemplating stringent punishment, including imprisonment, for those who committed power thefts and the officials who connived with them. The necessary amendments to the law would be enacted soon.

Mr. Krishna was speaking at a function organised to mark the signing of a power purchase agreement between the National Thermal Power Corporation Limited (NTPC) and the Karnataka Power Transmission Corporation Limited (KPTCL). The Union Minister for Power, Mr. Suresh P.Prabhu, was present.

The agreement for supply of 87 MW of power in less than four years from now from the 500-MW Ramagundam Super Thermal Power Station Stage III unit was signed by Mr. P.Ravikumar, Director (Finance), KPTCL, and Mr. H.L.Bajaj, Director (Commercial), NTPC. With this, Karnataka will receive about 1,000 MW power from NTPC stations (418 MW from Ramagundam I and II stages; 100 MW from NTPC stations in the Eastern region; 400 MW by November 2003 from Talcher Stage II and 87 MW from Ramagundam Stage III).

Mr. Krishna reiterated that transmission losses had to be brought down and efficiency improved. Similar concerns, he said, were echoed during the meeting with MPs earlier in the day.

The Government was committed to power reforms and it would pursue this path, irrespective of the potholes. He mentioned that last year, the Government's calculations went ``haywire'' with regard to the agriculture sector and it was forced to give subsidies and postpone revision of power tariff. ``This year, we hoped that a better picture would emerge, but then two-thirds of the State faces drought-like situation.'' The Government had sought Rs. 738 crores from the Centre as drought relief. A sum of Rs. 350 crores would be sanctioned in the first phase.

The consumers, he said, had to be oriented as he was not going to be taken in by assurances given by politicians regarding power availability and other factors. The consumer was not going to pay the required tariff unless he was provided with quality power, and that should be the endeavour of power utilities.

Mr. Prabhu said his ministry was attempting to talk to the leaders of political parties to arrive at a common minimum declaration with regard to power sector reforms. The power sector, he said, had to be freed from ``political populism.''

Underlining the importance of structural changes in the sector to make the State electricity utilities to become commercially viable, Mr. Prabhu said a report was being prepared on this. A district-wise power distribution plan was also being worked out. The Government was liquidating the dues amounting to Rs. 40,000 crores of State utilities by issuing bonds and securities.

As for power generation, he said that the NTPC had been asked to augment its generation capabilities as the plans of many IPPs (Independent power producers) were not fructifying. There was a need to step up greenfield capacity addition, besides improving efficiency on the existing ones. Presently, the NTPC was contributing 20 per cent of the total power generated.

The Ramagundam Super Thermal Power Station, which supplies power to Karnataka, Andhra Pradesh, Tamil Nadu, Kerala, Goa and Pondicherry, is expanding from 2,100 MW to 2,600 MW at an approved cost of Rs. 1,780.99 crores with a debt-equity ratio of 70:30.

The cost per MW is Rs. 3.56 crores. The coal for this unit will be supplied from Korba Coal Fields in Chattisgarh.

Karnataka will receive 87 MW, Andhra Pradesh 146 MW, Tamil Nadu 118 MW, Kerala 16 MW, and Pondicherry 13 MW. As many as 75 MW from the new project is yet to be allocated.

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Section  : Southern States
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