Supporting Finance Ministry’s disinvestment plan for public sector undertakings, Union Minister Piyush Goyal has said his ministry will not reduce the government’s stake in power sector PSUs below 51 per cent.
“Finance Minister can do whatever (as much disinvestment) he wants to do. We will support him. But we will not go for (reducing government stake) below 51 per cent. That is what we had announced for CoaI India and our other PSUs,” Power, Coal, New and Renewable Energy Minister Goyal told PTI.
Elaborating further he said: “Management and control of the PSUs should remain with the government. Last year divestment in PFC and REC was done. If they want then we are ready for another round.”
The government has set a disinvestment target of Rs 56,500 crore for the fiscal. Of this, Rs 36,000 crore is to come from minority stake sale in PSUs and Rs 20,500 crore from strategic sale. The government has already kick-started the disinvestment programme for the current fiscal with 11.36 per cent stake sale in NHPC, which fetched Rs 2,700 crore. It has lined up as many as 15 PSUs including Coal India, NMDC, MOIL, MMTC, National Fertilisers, NALCO and Bharat Electronics for divestment in 2016-17.
Recently, NitiAayog had submitted two separate lists for dealing with sick units and those PSUs where strategic sale is possible. Under strategic sale, government reduces stake to 49 per cent or below. In common parlance it is known as privatisation.
During 2015-16, the government managed to notch up Rs 25,312 crore through disinvestment, less than half the target of Rs 69,500 crore. It had raised around Rs 24,500 crore in 2014-15 by selling stake in companies, about Rs 16,000 crore in 2013-14 and Rs 23,960 crore in 2012-13. It had raised around Rs 14,000 crore in 2011-12 and over Rs 22,100 crore in 2010-11.
Asked about the impact of increase in coal prices by Coal India, Goyal said: “We are trying to rationalise it. We are not increasing the price of coal. When there will be drastic reduction in price of certain grade of coal (high calorific value) then there will be some increase in some other grades.” He explained this will lead to increase in use of higher calorific value coal and reduce quantities to generate same amount of power which will ultimately reduce freight cost.
“You need to blend the high calorific value coal as its prices have come down. You will require less quantity of coal and save freight. If I will not rationalise coal prices then there will be more imports, which would not be in natio’s interest,” he said.
Source Link :-http://www.dnaindia.com/money/report-will-not-cut-govt-stake-in-power-psus-below-51-piyush-goyal-2225529.
PANAJI: The government has advanced by at least five months the target to electrify all villages, power minister Piyush Goyal said after a two-day meeting of state power ministers.
Goyal said barring areas affected by Maoist insurgency, all unelectrified villages in the country are likely to be electrified by the end of 2016. The government had earlier set the rural electrification target at May 2017.
Earlier, Prime Minister NarendraModi had announced complete electrification of India by May 2018 and said that by December 2018, all Indian citizens will have access to electricity. He had also said that by March 2019, power will be available 24X7 to all, ahead of the earlier target of March 2022.
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Government will soon come up with a proactive hydro power policy to push stalled projects and explore possibility of extending benefits for renewable sources like wind and solar to hydro projects beyond 25 MW.
The decision was taken here at the state power ministers’ conference chaired by the Power, Coal and New and Renewable Energy Minister Piyush Goyal.
“It is resolved to formulate a pro-active comprehensive hydro power policy to revive the hydro power sector. The policy shall also explore possibility of providing benefits of renewable energy to hydroelectric projects beyond 25 MW,” Goyal said today at a press conference after the meet.
The ones of up to 25 MW capacity have been categorised as small hydro power projects and get benefits as renewable energy projects. Hydro power potential in the country has been estimated at about 150 GW, with 50 GW coming from Arunachal Pradesh alone.
Earlier in March, Planning Minister RaoInderjit Singh had told the LokSabha that the planned hydro power generation capacity addition of 4,371 MW out of a total target of 10,897 MW in the 12th Plan will not be complete.
The meeting also discussed contours of the hydro power policy and sought to work out ways of reviving small (25 MW or less) stalled hydro projects with cooperation from the states in a bid to provide new thrust to the sector.
A committee for this has been set up which will submit its recommendations by September-end.
Goyal further said it was also resolved to electrify all remaining un-electrified villages by December this year except in Left wing extremist areas much ahead of the revised deadline of May 1 of 2017.
Initially, the government had planned to electrify all 18,452 un-electrified villages by May 1 of 2018. States are expected to achieve electrification of 12,300 villages by August 15 of 2016.
Goyal said states have also resolved to achieve 24X7 power for all in their respective states by March 2019, three years ahead of the original deadline of 2022.
He was of the view that there is need to increase consumption and not hike power tariff to make the sector viable.
PANAJI: The Centre will stop funding states that are found indulging in irregularities in procurement of material for its flagship schemes for rural electrification and urban upgradation of power infrastructure, Power Minister Piyush Goyal warned today.
“I would request states which are not willing to join the common procurement pool to study its benefits, do an apple to apple comparison, compare the specifications (from central pool) to that being procured with your own specifications, compare the prices before you take any decision.
“Any irregularity found by us at the Centre could actually cause us to stop the funding to the states which indulge in any activity which are not in the best interest of the people of India,” Goyal told the ministers and secretaries of states at a 2-day conference here.
“DeenDayalUpadhyay Gram JyotiYojana and the integrated power development scheme are largely funding the investments in this roll out of rural electrification and urban upgradation,” he said.
“We will be watching and closely monitoring the technology and quality of products that are being bought by the states. We will be monitoring the pricing at which these are being bought and transparency with which these are being purchased.
“Any problems associated with the quality, technology, pricing or corruption that are brought to our notice will be promptly put up on the website (of the ministry),” Goyal said.
So, it is the choice that different states can make, he said, adding, “If you believe that you can do it better than central procurement, you are welcome. But the strength of this programme is the fact that we are all in it together and we are combining our procurement and…combined requirement helps us to do process more honesty and helps us to keep tab on quality control”.
During his half an hour long speech, the minister said that Maharashtra had earlier joined the operational efficiency part of UDAY scheme.
PANAJI: India’s northeastern states require special attention from the rest of the country, Power Minister Piyush Goyal said today.
“Unless we care for northeast India, we will never be able to change the future of India,” he said, delivering the inaugural address at the two-day conference of state power ministers near Panaji, adding the region requires concern, care, commitment and special attention from everyone.
“I am happy that this conference has developed into a good platform for exchange of ideas and to understand each other’s problems,” he added.
The Union minister also sought the support of the states to stop the menace of power thefts in the country.
Sharing Gujarat’s experience of reduction of power thefts, Mr Goyal said the tariff increase in the state had been the lowest.
“It is not the poor who steal, and it’s the bigger power thefts which make corruption,” he said.
The half-yearly conference is being attended by power ministers and secretaries of the state and Union Territories and senior officials of public sector undertakings of the ministry.
It aims to review implementation of various ongoing schemes, programmes and issues pertaining to the power, coal and renewable energy sectors.
Among other issues, “adoption of energy conservation building codes by states and energy efficient agricultural pumps will be discussed”, a power ministry statement said.
“In the area of renewable energy, state-wise review will be taken on solar power, wind power and small hydro power as well as the compliance of Renewable Purchase Obligations (RPOs) and Renewable Energy Certificates,” it added.
Source Link: http://www.ndtv.com/india-news/piyush-goyal-says-northeast-needs-special-attention-from-rest-of-india-1419964
PANAJI: Threatening strict action against those indulging in theft of electricity, Power Minister Piyush Goyal today said it is “industries” as well as “big people” and not the poor who are involved in the pilferage.
“Bribes are offered to linesmen and department officials, and may be politicians are also involved in it,” Goyal said here at the 2-day conference of power ministers of states and Union territories.
He called for taking action against those involved in power theft saying it will benefit the common man.
He said: “I would like to mention that this is not the issue concerning the poor people. Do’t think that you will be politically affected if you take action against the power theft. Poor persons are not involved in the theft. Farmers do’t do it because they get it cheap or free power.
“Maximum theft is in the field of industries and by big people. I feel there is a political benefit in stopping the theft because by doing that you will be able to reduce the electricity bill of the common man.”
He added: “If you do your job honestly and if you are able to convey to people that what you are doing is for their benefit, then I can assure you that politically there is a great benefit in curbing power theft.”
The Union minister also hailed the efforts of Prime Minister NarendraModi during his stint as Gujarat Chief Minister in converting the loss making power sector into a profit yielding one.
“I have learnt this from Gujarat. When Prime Minister NarendraModi was the Chief Minister of Gujarat, in the first year itself he began a crackdown on electricity theft. This was in the year 2002 and Modi faced criticism,” he said.
“Around one lakh FIRs were filed and even BJP workers were put behind bars. But due to that step, Modi managed to improve the power scenario in the state,” Goyal stated.
“The electricity companies in Gujarat were suffering losses of Rs 2,500 crore when Modiji became Chief Minister 14 years ago. Within a short span he was able to convert that loss into a profit, probably in two or three years without increasing power tariff,” the minister said.
“Over the years, the lowest increase in tariff has been in Gujarat and yet it is in profit, making it a self sustaining power sector,” he added.
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