Comprehensive Reforms as the Union Minister of Power
As the Union Minister for Power, he won praise for his performance from The Indian Express. As Minister of Power, he ushered in transformational policies in the Power sector with thrust on rural-electrification, T&D reforms; encouraged big ticket investments and batted for Sustainable Power Development, etc. mentioned as under:
Power Generation Augmentation:
- Prepared an action plan for creating an additional capacity of 100,000 MW to provide power on demand by 2012.
- Formulated a renovation and modernization action plan for 170 thermal power units and 35 hydro units with a total generation capacity of 14,000 MW.
- Executed resource planning for building additional power generation capacity. Took steps to set up alternate payment security mechanism for the investors as an interim resource mobilization strategy.
- Set up Power Projects Monitoring Committee to expedite the speed of commissioning of generation facilities.
Policy Measures:
- Introduced the landmark Electricity Bill 2001, which provided for non-discriminatory open access in the transmission segment and mandated State Electricity Regulatory Commissions to introduce open access in distribution.
- Executed the Accelerated Power Development Program (APDP) to improve the operational efficiency of old generating stations through renovation/modernization and reduce transmission and distribution losses.
- The Integrated Power Development Scheme was launched during his tenure to strengthen the distribution and sub-transmission systems in urban areas. It aimed to reduce technical and commercial losses, improve billing and collection efficiency, and enhance the reliability of power supply in cities.
- Executed resource planning for building additional power generation capacity. Took steps to set up alternate payment security mechanism for the investors as an interim resource mobilization strategy.
- Initiatives taken which resulted in signing of MoUs with States for undertaking reforms and restructuring in a time bound manner.
- Instrumental in the implementation of the landmark tripartite agreement which allowed the Union government to recover the amounts due from the states by deducting them from central devolution.
- Implemented a special aid package under the Accelerated Power Development Program for the reforming States in order to encourage distribution reforms.
- Formed National Power Grid to enable power transfer from power surplus regions to power deficit regions and enable optimal development and utilization of coal and hydro resources economically.
- Undertook policy measures to accelerate hydro power development by laying emphasis on basin-wise development.
Rural Electrification:
- Played an instrumental role in preparing a 7-year Action Plan for Rural Electrification to complete the electrification of all villages in the country.
- Set up credit support from the Rural Electrification Corporation to State Electricity Boards for the speedy electrification of Dalit bastis, households of scheduled tribes, and other weaker sections of society.
Encouraging Investments:
- Encouraged FDI in transmission through two routes: Joint Ventures and through the Independent Power Transmission Corporation.
- Amended the Indian Electricity Act, 1998, to enable private sector participation in transmission.
Distribution Reforms:
- Prepared a holistic six-level intervention strategy for distribution reforms in the power sector and the strengthening of State Electricity Boards.
- On the commercial front, took action to ensure tamper-proof meters, operationalized energy accounting, and implemented a decentralized computerized billing system.
Sustainable Power Development:
- Set up a Special Purpose Vehicle (SPV) to undertake afforestation and implement stipulated environmental measures.
- Took steps to enhance the use of fly ash products in government infrastructure projects.
