Question : INCENTIVES TO STATES

(a) whether the Union Government isproviding incentives to the States forincreasing power generation capacity;

(b) if so, the details thereof, State-wise;

(c) the funds allocated by the UnionGovernment to various State Governmentsincluding Assam for the development ofpower sector during the last three yearsand the current year;

(d) whether the Government proposesto provide financial assistance for purchaseof additional power generation equipment for the State Government of Kerala; and

(e) if so, the details and the type of equipment financed by the Union Government?

THE MINISTER OF STATE IN THE MINISTRY OF POWER (SHRI K.C. VENUGOPAL)

(a) to (b): The major initiatives undertaken by the Union Government at policy level to incentivise increase in power generation capacity include delicensing of thermal generation, introduction of Ultra-Mega Power Projects (UMPP) initiative, investor friendly New Hydro Policy 2008 and liberalization of Mega Power Policy. In addition, regular monitoring of under construction projects is being carried out by the Ministry of Power and Central Electricity Authority to identify and address constraints in the project implementation.

(c): Planning Commission approves the Annual Plan outlay of States each year. The funds approved by the Planning Commission to the States during the Annual Plan includes funds allocated for the power sector. The details of allocation of funds for power sector under State plan and in respect of Assam during the last three years and the current year are as under:

Allocation of funds under State Plan – Power Sector
(Rs. In Crore)
Sl.No.	State	2008-09	2009-10	2010-11	2011-12
(Appd.)	(Appd.)	(Appd.)	(Appd.)
1	Assam	416.97	172.54	389.39	504.87

2	All States	32315.10	37417.58	47297.02	46165.33