Government increases budget outlay for power sector in 2009-10 by over 43 per cent to Rs 521.26 billion - Additional funds to tap clean energy

The government has increased the budget outlay for the power sector in 2009-10 by over 43 per cent to Rs 52,126.27 crore that may help tap electricity from clean sources. If we want to develop cleaner sources of power, we would require budgetary support for that. This additional budgetary support would help. We would look forward to efficiency in generation and demand side management,'' former Power Secretary Mr Anil Raz dan said. Compared to Rs 36,307.47 crore plan outlay for the Power Ministry for this financial year, the government has made a provision of Rs 52,126.27 crore for 2009-10 in the interim budget tabled in Lok Sabha on Friday by Finance Minister, Mr Pranab Mukherjee. The additional budgetary support is likely to give boost to companies such as Power Finance Corp and Rural Electrification Corp, engaged in financing power projects. “This additional support would help the generating companies like NTPC, NHPC and others, if this (additional support) is made available to more projects, it would bring more opportunities for us,'' PFC CMD, Mr Satnam Singh said. “This would not really impact NTPC as we are not dependent on government support, but it would give boost to other generating companies in the power sector,'' a senior NTPC official said. Is it sufficient?? No doubt , the govt has increased the budgetary allocation but this is too little.A gigantic target , to add nearly 8000MW in 11th plan seems nearly impossible , taking previous targeted addition. And in recent financial crunch where projects are not getting money from lenders, govt should have gone out of the way to support infrastructure in a huge manner and particularly for power sector. It missed a golden chance to build up infrastructure as well as creating additional jobs out of it.