Naidu plea to Govt. on power MoUs

By Our Special Correspondent

NEW DELHI, APRIL 7. The Andhra Pradesh Chief Minister, Mr. N. Chandrababu Naidu, today urged the Union Power Minister, Mr. Suresh Prabhu, to waive the conditions of additional comfort and security being insisted upon by financial institutions from independent power producers. Mr. Naidu, at the forefront of implementing power reforms, said there was no need for additional guarantees specially in view of the fact that the State were issuing guarantees for financing of IPPs.

Mr. Prabhu has reportedly agreed with Mr. Naidu's views and plans to convene a meeting of financial institutions on Wednesday to consider the matter and make the necessary changes in the memoranda of agreement. The two also discussed the strengthening of the transmission and distribution system.

The Power Ministry will organise a national-level seminar in Hyderabad with the participation of State government and power sector experts to evolve a plan of action for strengthening the T&D system based on the experience of various States.

Complimenting Mr. Naidu for his efforts at reforming the power sector, Mr. Prabhu said the Andhra Pradesh model was being acknowledged by other States. The Power Grid Corporation would undertake the strengthening of the transmission system over a length of 1,300 km. at a cost of Rs. 390 crores.

In a separate meeting with Mr. Sharad Yadav, Civil Aviation Minister, Mr. Naidu protested the lethargy in providing air connections between Hyderabad and leading cities of the world. Several airlines including British Airways, Qantas and Emirates had come forward with proposals to provide air services to Hyderabad.

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