Workshop on Developing Power Markets in India..., jointly organized by PTC & TERI.
05 April 2002
Power Trading Corporation (PTC) and TERI organized a workshop on the subject "Developing Power Markets in India: Needs, Problems & Prospects" on Friday, April 5, 2002. The Power Minister, Shri Suresh Prabhu, inaugurated the workshop. In his remarks, Shri Prabhu stated that in the past guarantees have delayed reforms and that the most pressing need today is to expedite distribution reforms. Complimenting PTC on its success in short-term trading under difficult and trying circumstances, he called for more efforts in developing power markets. Referring to the Electricity Bill, he pointed out that this has provisions to facilitate such trading. He also called for providing appropriate infrastructure for developing power markets and advised PTC to provide innovative solutions for risk management in this difficult sector. A national tariff policy is being prepared which would act as a guide to the regulators. Shri Prabhu complimented PTC and TERI for having organized this workshop, which is highly topical and timely.
The deliberations showed that power trading is growing. It was recognized that this is taking place without guarantees, on a commercial basis and significantly without any default so far. There are vast opportunities for trading given the complementarities in different parts of the country. PTC has catalyzed this process. It was generally felt that dependence on guarantees or counter guarantees is not sustainable.
Power trading can also provide a mechanism for leveraging investment. This is sought to be done through the mega power project policy. The value added by power trading and power markets needs to be clearly brought out. This process also has to be linked to the reform programme. Given the time required for this process, there is a need for short, medium, and long-term solutions.
Shri N.K. Singh, Member-Planning Commission, in his concluding remarks, stated that PTC's operations have so far been limited. This was because of the endemic problems faced by the power sector. To attack this problem, policies are being designed to incentivise states towards better performance. He recognized the significant role that PTC could play in matching the disequilibrium in different parts of the country. Its role in large-scale projects has yet to be clearly demonstrated. He also called upon PTC to use non- conventional sources of energy for expanding its business.
Dr R.K. Pachauri, Director-General, TERI, had earlier in his opening remarks pointed out that the workshop is only the start of a longer process. TERI would, in association with PTC and on the basis of the deliberations, prepare a paper setting out the issues and outlining possible solutions. This would be taken up with Government, regulators and other stakeholders from whom action is required. It was hoped that this would not merely expand power trading but also accelerate the process of reforms. |
