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Progress has been slow in
several areas where the
Planning Commission has
made recommendations under
the Integrated Energy Policy. In
a recent review, it was noted that
no significant movement in the
process of amendment of Coal
Mines Nationalization Act, 1973
had been made. According to
the Plan panel, amendment of
this Act is of paramount importance
for private sector participation
in coal production and
energy security. In the first four
years of the just-concluded 11th
Plan, coal production increased
at an average rate of 5.1 per cent
against the target of 9.5 per cent
per annum.
Further, a market price regime
is yet to be introduced for coal
pricing and there is no agreement
yet between the coal and
power sector utilities for shifting
to gross calorific value based
pricing system.
Among other areas, the Planning
Commission noted that the
pace of reduction of aggregate
technical and commercial losses
had been slow. The revision of
power tariff from the discoms
was also not happening as frequently
as required. The Commission
is of the view that this
may pose a serious threat to the
financial viability of the discoms
and sound financial growth of
the entire power sector. Also, the
intra-state open access is yet to
be made operational.
The Planning Commission
observed that the retail selling
price of diesel, kerosene PDS
and domestic LPG continued to
be regulated by the government
and involved huge subsidy. The
issue of de-regularisation of
prices was still under the
EGoM’s consideration.
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