Monday, May 30 2005 09:49 Hrs (IST) - World Time -

Shimla: Prime Minister Manmohan Singh yesterday (May 29, 2005) strongly pitched for power sector reforms to attract private investment and make it an engine for growth in view of the country's wide energy deficit.

"Today, energy shortage is 11 per cent. Over the years, SEBs have become financially sick with losses of over Rs 21,000 crore... there is a need to reform the power sector to ensure that it becomes the engine of growth," Singh said addressing a conference of States' power secretaries.

He said "unbundling" of SEBs into three separate companies for generation, transmission and distribution of electricity was not a goal in itself but the goal has to ensure efficiency, economy and enhancement of power generation.

Singh wondered why private investments were not coming into the power sector in a big way. "I want to know why there has not been a boom in private investment in the power sector."

The Prime Minister conceded cross-subsidy remained a critical element in the power sector and would continue, "For a long time so that certain sections of society, for whom power is an absolute necessity and cannot afford, can continue to get power at affordable less than cost rates."