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MACHINIST - Budget doubles Plan allocation for Power Sector

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Home arrow Power and Energy arrow Budget doubles Plan allocation for Power Sector

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Budget doubles Plan allocation for Power Sector
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Written by Anand   
Wednesday, 03 March 2010

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New Delhi: The Plan allocation for the Power Sector has been doubled from Rs.2,230 crore in 2009-10 to Rs.5,130 crore in 2010-11. This was announced by the Finance Minister, Shri Pranab Mukherjee in his Budget speech. The allocation does not include allocations for Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY).

The Minster said that Government accords the highest priority to capacity addition in the Power Sector. The framework for induction of super critical technology in large capacity power plants of the National Thermal Power Corporation is now in place.

The Mega Power Policy has been modified is now consistent with the National Electricity Policy, 2005 and Tariff Policy, 2006. This, the Finance Minister said, would help in lowering the cost of generation and cost of power purchased by the distribution utilities.

The total outlay for the Ministry of Power is Rs.60,751.42 crore. The provisions are mainly towards schemes pertaining to NHPC – Rs.781 crore, Energy Conservation - Rs.143.94 crore, Bureau of Energy Efficiency - Rs.66.92 crore, RGGVY – Rs.5,500 crore, Restructured Accelerated Power Development Reform Programme – Rs.3,700 crore and interest subsidy on National Electricity Development Fund – Rs.227.64 crore.

The total outlay for Nuclear Power Scheme is Rs.4,739 crore. The Plan outlay consists of Rs.1848 crore by way of budgetary support and Rs.2,891 crore of IEBR.

The Finance Minster also proposed to increase the Plan Outlay for the Ministry of New and Renewable Energy by 61%  from  Rs.620 crore  in 2009-10 to  Rs.1000 crore in 2010-11.

The Ministry of new and Renewable Energy, which aims to develop and utilise new and renewable sources of energy fur supplementing energy requirements of the country in an eco-friendly and sustainable manner, has got a total Plan Outlay of Rs.1,950 crore which includes Rs.950 crore as IEBR in the annual plan for the year.

 
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