Shri. P. M . Sayeed took charge today as Minister of Power. Born on 10^th May, 1941, he completed his college education in B.Com and Law from Mangalore and Bombay respectively and is a linguist proficient in eight languages. He brings with him rich experience of four decades in political life. He was elected as Member of the Lok Sabha for ten terms spanning the period between 1967 and 1999. He has been Minister of State of the Union in the Ministries of Home Affairs, Ministry of Information and Broadcasting and Steel, Coal and Mines. In addition, he has been a Member of several important Committees of the Parliament.

The Minister had a meeting with the Senior Officers of the Ministry as well as the Chairman & Managing Directors of the various Central Public Sector Undertakings under the Ministry.

Addressing the Officers, the Minister highlighted that the Government headed by Dr. Manmohan Singh is fully committed to the high values in every field of governance and expects all dealings to be conducted in an objective and transparent manner. The Minister stated that he expected free and frank opinions from the Officers and that they should advise him without any inhibition in the best interests of the nation.

The Minister was given a comprehensive presentation on the various activities of the Ministry and the Public Sector Undertakings and also on the various activities being taken up pursuant to the Electricity Act, 2003 coming into force. The Minister stated that as Dy. Speaker of the Lok Sabha he had been closely associated with the passing of the Electricity Act, 2003. While the Ministry should continue to work within the framework set by this Act, the Minister stated that special focus should be given on rural electrification.

Concluding, the Minister stated that he was happy to become a part of the "large Power Sector family" and assured his full trust and support to the Officers from whom he expected hard work and transparency in all their actions.

The Minister outlined his priorities for the Power Sector as below :

• Extensive Rural Electrification programmes will be put in place to provide access to electricity to house-holds who do not have power – Presently, 56 % rural house-holds in the country do not have access to electricity.

• Reliable power supply to agriculture and rural house-holds a basic necessity for economic development in rural areas.
• Rural electrification should be the focal point for all programmes for rural development.
• To meet these objectives activities of Rural Electrification will be strengthened and re-organized to ensure completion of electrification in the rural areas.

• Massive capacity additions are required for rural electricity supply and to sustain economic growth considering that even as of today we are having power shortages ( 11% peaking shortage). We will ensure achievement of X^th plan target of 41,000MW. Advance action will be taken for achieving X1^th Plan target of 60,000 MW.
• Exploiting renewable hydro-electric potential to the maximum extent possible would be a priority. Advance preparatory action will be taken for projects to be realized in XI^th and XII^th plan.
• All support will be provided to private power generating companies (IPPs) and for expediting financial closure of 8,000 MW by June 2004.
• A long term capacity addition programme of 1,50,000 MW (50,000MW hydro and 1,00,000MW thermal including gas) together with action plans would be formulated within the next one month.
• In the VIIIth and IXth plans together, the country added 35,437 MWs. In the Xth plan 41,110 MW is targeted. It is clear from the following table that this is achievable.

• Distribution sector reform is a must to provide reliable, quality and affordable power. Technical loss reduction, theft control, proper metering, billing and collection through committed involvement of the state utility would lead to financial revival of the electricity sector leading in turn to better service to consumers.
• Accelerated Power Development and Reforms Programme (APDRP) will be further strengthened not only to ensure financial turn around of the power sector but also to provide quality and reliable power to consumers

• National Electricity Policy

• Electricity Tariff Policy
• Rural Electrification Policy
• Policy on competitive bidding
• In addition, as required under the Act, a national level Appellate Tribunal will be set up.

• The Electricity Act’2003 contemplates the efficient development of the power sector in a competitive environment. Restructuring of vertically integrated State Electricity Boards in a phased manner – primarily to bring about greater accountability, provision of subsidy in a transparent manner and introduction of competition through open access in transmission.

• The Act permits subsidy to different segments of consumers – in a transparent manner to be provided through budgetary support by the State Govts.