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Recent steps taken to meet the above problems

  • Electricity Act was passed in 2003 and Electricity Amendment Bill 2005 was passed in 2005 to improve investment in power sector and fixing of power tariffs on the basis of competition, efficiency, economical use of resources, etc.
  • The Ministry of Power launched ‘Partnership in Excellence’ programme. Under the programme, 26 thermal stations with PLF less than 60% have been identified and steps will be taken to improve their efficiency.
  • The use of hydel and wind energy sources are encouraged by the government as they do not rely on fossil fuels and avoid carbon emissions.
  • Government is encouraging private sector investment in power by giving tax incentives, permitting FDI in varying extents in different sub sectors of power.
  • Nine sites were identified for the development of ultra-mega power plants with a capacity 4,000 MW each.
  • Aggregate Technical and Commercial (AT&C) losses of most State Power Utilities (SPU) is quite high. To address the problem, the Accelerated Power Development and Reforms Programme (APDRP) was initiated in 2002-03
  • In order to reduce transmission losses, distribution reforms have been carried out. In 2002, power sector was privatised in Delhi.
  • The inter-regional transmission capacity is increased to 49,000 million units in the year 2011-12. An all India Power Grid, also called the National Grid is being developed by the year 2012. This helps to even out the mismatches in supply- demand
  • ‘Rajiv Gandhi Grameen Vidhyutikaran’ programme was started in 2005 with a view to provide electricity to all areas including villages. Under this scheme, nearly 1,00,000 villages have been electrified and connections to 200 lakh below-poverty-line households have been released

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