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Home -> Finance -> Full Story
Centre’s fiat to states on power dues to PSUs
Thursday, June 20 2002 13:09 Hrs (IST)

New Delhi: Getting tough with the states, the Centre has told them to make full payment for current power purchases from Central public sector units (PSUs) and clear the dues as per Ahluwalia Committee recommendations or face restriction in power supply.

"The states are required to accept the scheme by June 30. We would now have no option but to begin restricting supply to those states which do not make full payment for current purchases from Central generating stations and securitise past dues," Union Power Minister Suresh Prabhu said in a letter to the respective Chief Ministers (CMs) of states.

For securitisation of the past dues of the State Electricity Boards (SEBs), the recommendations of the Ahluwalia Committee were considered by the Empowered Group of CMs and the states must act upon it, the Minister said.

Prabhu said to work in partnership with the states for power sector reforms, the Ministry has signed specific Memoranda of Understanding (MoUs) with 21 states and efforts were being made to seek all parties' co-operation in implementing the reforms.

"I have already written to the Leader of the Opposition party in your State Assembly. I have also written to the leaders of the national parties seeking endorsement for a draft minimum action plan on power," Prabhu said in his letter.

He asked the Chief Ministers to carry out periodic reviews with regard to specific steps towards power sector reforms emphasising on improving the distribution sector.

PTI