New Delhi, Feb 28 (IANS) Finance Minister Arun Jaitley Saturday said his government plans to build five new ultra mega power projects totalling 20,000 MW which will unlock investment of up to Rs.1 lakh crore. Economists, however, seemed sceptic.
The step has been planned with the aim of electrification of the remaining 20,000 villages in the country by 2020.
"The government proposes to set up five new ultra mega power projects, each of 4,000 MWs in the plug-and-play mode.
"All clearances and linkages will be in place before the project is awarded by a transparent auction system. This should unlock investments to the extent of Rs.1 lakh crore," Jaitley told the Lok Sabha while presenting the budget for 2015-16.
He said his government will also consider similar plug-and-play projects in other infrastructure projects such as roads, ports, railway lines, airports and other sectors.
The minister said the second unit of the Kudankulam Nuclear Power Plant will be commissioned in 2015-16.
Even as the government was moving towards enhancing the national power capacity, economists seemed sceptic.
"Prima facie, we have not seen any concrete measures in the budget for renewable energy. Unlike rail and roads, tax free bonds have not been specifically proposed for renewable energy," said Anish De from market researcher firm KPMG.
He said the general emphasis on renewable energy and re-stating of the MNRE target to 175 GW by 2022 comprising 100 GW of solar, 60 GW of wind and 15 GW of other technologies was not adequate to make capacity creation happen in reality.
Economist Abhirup Sarkar also echoed a similar feeling.
"There hasn't been considerable progress on the public-private partnership model. There are concerns from private investors in infrastructural projects as the price chargeable to the consumer is regulated by the authorities," Sarkar, a professor of the Indian Statistical Institute, told IANS.
He said the gestation period in the power sector may go up to 20 years and investors might not be keen about making any large investments in the segment.
"In a PPP model, the only government equity is land and the rest is from the investor or developer. With such high gestation period and a controlled situation from the government, I don't think investors will be keen," he said.
The second disaster waiting after the floods in Pakistan may come 'wave of death
Thousands of people have lost their lives in the unprecedented floods in Pakistan. This disaster
Make in India in focus during Qatar Emir's visit
New Delhi, March 20 (IANS) The Narendra Modi government's
The India Alliance of opposition parties staged a strong protest in the Parliament premises again
Ambani: Anant Ambani and Radhika Merchant stopped, the ceremony was held at Shrinathji temple
Anant Ambani, the younger son of Reliance chief Mukesh and Nita Ambani, has been stopped. Very so
People's wait is over and the most awaited show of the year 'Panchayat Season 4' has now been rel
The Supreme Court has put its stamp on the reservation being given to the Economically Weaker Sec
'PM Modi is afraid of Trump': Rahul attacks PM over US President's claim about Russian oil purchases
Congress leader Rahul Gandhi has once again launched a scathing attack on PM Modi, accusing him o
The Congress lashed out at the Bharatiya Janata Party for maintaining silence on the issue of Chi
The names of former cricketer Sachin Tendulkar and his family are also in the Pandora Papers.
The Indian government has ordered a multi-agency investigation into the leaked Pandora Papers. Th
Lucknow The state of the second wave of the global pandemic Coronavirus infection has become extr
