The Government has taken several initiatives to improve the performance in major infrastructure sectors. Five major initiatives taken in the power sector are given below.
1. Automatic approval of Foreign Direct Investment
Automatic approval for 100% foreign equity is permitted in generation, transmission and distribution, and trading in the power sector without any upper ceiling on the quantum of investment.
2. Signing of Fuel Supply Agreements
The Cabinet Committee on Economic Affairs (CCEA) has issued a directive to the Ministry of Coal/Coal India Limited to sign fuel supply agreements (FSAs) for a total capacity of 78,000 MW, including tapering linkage, which are likely to be commissioned by March, 2015.
3. Pass-Through mechanism
Pass-through mechanism for the concluded Power Purchase Agreements (PPAs) has been approved by the CCEA.
4. Deen Dayal Upadhyaya Gram Jyoti Yojana
Deen Dayal Upadhyaya Gram Jyoti Yojana for electricity feeder separation and strengthening sub-transmission and distribution systems in rural areas has been launched.
5. Ultra Mega Solar Power
Ultra Mega Solar Power projects in Rajasthan, Gujarat, Tamil Nadu, and Laddakh in J&K have been announced.