Power Sector Allocation doubled in Union Budget

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. The allocation does not include allocations for Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY). This was announced by the Finance Minister, Shri Pranab Mukherjee in his Budget speech in Parliament today.

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.

Source : Equity Bulls

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