‘Government have decided to promote private players in power sector’

–        Gajendra Khimsar, Minister of Energy, Rajasthan

What have been the notable achievements in the power sector in Rajasthan?
The most notable achievement of the power sector has been the meteoric rise in installed capacity. The financial year of 2005-06 saw a capacity addition of 157.78MW. We have also seen tremendous growth of the state transmission network. The 220KV lines have increased to 8273 Cicrucit kilometre (CuKm) in 2005-06 in comparison to 7492 CuKm in 2004-05. There are many new proposals in the pipeline which would strengthen the transmission network in the state. The distribution segment also saw a  steep growth in the current financial year. The total numbers of villages that have been electrified till the end of this financial year stand tall at 35090, which is phenomenal. We are also targeting to reduce distribution losses to 20 per cent from the current 38 per cent. We have adopted innovative measures for efficiency improvement in the distribution system. Some of the measures that are being followed are feeder renovation programme, urban and industrial focus programme, vigilant checking, survey of permanently disconnected connections, and recovery of arrears from these customers among others.

What policies have been formulated for promotion of private sector investment in the state?
After considering the availability of additional generation capacity of about 3000 MW from the state and the central sector projects, the state government have taken a policy decision to promote private sector investment by offering various concessions and assistance. Investment proposals for thermal power projects of 125 MW and above (except captive power plants) will be eligible for certain concessions. These include single window clearance by Board of Infrastructure Development and Investments, allotment of land at district level committee rates without conversion charges, stamp duty exemption, water supply, no entry taxes on capital goods, 50 per cent of the power generated in the state be sold to state, competitive bidding process, purchases by Discoms to be supported by state government guarantees and certain other concessions.
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