Encourage private players in transmission sector: Panel

An advisory group on energy has asked the government to encourage private participation in power transmission sector.

The Advisory Group for Integrated Development of Power, Coal, and Renewable Energy chaired by Suresh Prabhu (Union Minister for Railways) made the suggestion as part of its report which was recently submitted to the Ministry of Power. Private firms account for 35 per cent in power generation as against only 3 per cent in transmission.

It also suggested that bidding for transmission projects should be expedited, the time period for clearances should be shortened and the transfer of SPVs (special purpose vehicles) should be done within three months.

The group also suggested that the mechanism to identify critical transmission constraints, formulate specific projects and have them executed in the most effective manner, should be put in place.

The group also suggested enhancement of coal production in short, medium and long terms. It has called for improvement in Coal India and its subsidiaries.It added that opening up of the coal sector may be necessary to supplement in a significant way the domestic production by Coal India and a few other companies.