Mega power projects get hit by regulators
New Delhi: The Government's ambitious `ultra mega' power projects may soon come up against Central Electricity Regulatory Commission (CERC) which has asked the Power Ministry to clarify the jurisdiction of Power Finance Corporation (PFC) in inviting bids to execute seven proposed ultra mega projects of 4,000 MW capacity each.

Under the Government's Guidelines for Competitive Bidding, only utilities wanting to procure power (distribution utilities) or their agents are entitled to invite bids to set up generation projects. In the case of the proposed ultra mega projects, PFC — a state-owned non-banking finance company — has been designated as the Union Government's nodal arm responsible for inviting bids for the projects. And since PFC is a funding institution that plans to arrange a major portion of the debt requirements for the projects, and thereby an "interested party", its role in calling for the bids has come under regulatory scanner.

Following the CERC directive asking for a clarification on the issue, the Power Ministry is set to make a presentation to the commission next week clarifying PFC's role in the entire exercise, officials said.
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States asked to pay more for overdrawing power
New Delhi: The Forum of Regulators (FOR), an umbrella organisation formed by power sector regulators at the Centre and the States, has asked the Government to act against states that regularly overdraw power from the central grids. The "habitually errant" states include Madhya Pradesh, Uttar Pradesh and Jammu and Kashmir.

Following the conclusion of a two-day meeting of the Forum here, Central Electricity Regulatory Commission, A.K. Basu, said the Forum has decided to set up two expert groups to deliberate on issues such as the concept of distribution margin as the basis for allowing returns in the distribution business and also the return of equity and operating norms for the distribution sector.

The Forum also delved on lowering costs associated with harnessing of surplus captive power generation, rising cost of traded power and consumer advocacy mechanism. The Forum favoured setting up a consumer cell within each State Electricity Regulatory Commission for better compliance of performance standards and consumer redressal.
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India to import 3 million tones wheat
New Delhi: The government has decided to import three million tonnes (30 lakh tonnes) of wheat. The decision, announced by food minister Sharad Pawar late Friday evening is the largest-ever wheat import in a single year in recent times. The government would have to cough up at least Rs2,400 crore for the procurement. The 30 lakh tonnes of wheat to be imported is in addition to the five lakh tonnes already imported from Australia.

For now, wheat will be imported by government agencies including the STC.

The decision comes despite stringent criticism the first time round for not allowing private traders to make duty-free imports and achieve best-price realisation.

The decision has been announced well before peak procurement season between mid-April and mid-May and is virtually double the 1.5m tonnes of wheat import indicated earlier. This is a signal that the food ministry has failed miserably in making a realistic assessment of the food security needs and the food grain paucity and attendant high prices looming large in the open market.
The decision is also being viewed against the backdrop of the US bringing pressure upon the Indian government to import wheat from the USA. In fact, some quarters had raised questions on the relaxation of SPS standards AWB to clinch the wheat import deal announced in end February.

The Centre is already paying Rs10 per quintal over the MSP in UP to lure farmers, but with limited success. An official statement said that the decision was to "ensure adequate stocks of wheat in the central pool as well as to give the right signal to farmers and curb any speculative trading
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