Indian government is working to attract foreign direct investment (FDI) in the power sector which is critical for the country's economic growth. Earlier, despite making provisions for 100%
FDI in the power sector under the Electricity Act, 2003, not much response was there since menerly 2-3 foreign investors came forward but now, government is working to help instil confidence in foreign investors and see the sector grow.
The government has already paid Rs.10,000 crore to Enron though the commitment was made by the previous National Democratic Alliance government. To fulfil the commitment, Prime
Minister Manmohan Singh is taking different steps as he doesn't want India's image to suffer. The ministry is on course to achieve the 78,700 MW target for the 12th plan and listed steps like enhancing the capacity of Bharat Heavy Electricals Limited (BHEL).
Currently, India needs bigger generation capacity as it is aiming to achieve 1,000 units per capita consumption by 2012. At present, the country's per capita power consumption is 700-800 units.
Andhra Pradesh government has urged the union minister to speed up the clearances for the power projects in the state as the state is uniquely positioned to emerge as a power hub as it has abundant coal and natural gas reserves and also has Uranium reserves and the Uranium Corporation of India Limited has selected Thummallapalli in Kadapa district and Lampapur-Peddagattu in Nalgonda district for mining uranium.
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