Telecommunication & Power - Indian Budget 2006 – 2007 (72 - 76)

IX INFRASTRUCTURE

Telecommunication

72. The telecommunication sector in India is recording one of the fastest growth rates in the world. Tele-density stood at 11.75 per hundred at end-January, 2006. The ambitious target is to reach 250 million connections by December, 2007, and I am confident of success. I propose to provide Rs.1,500 crore from the Universal Services Obligation Fund in 2006-07.

73. More than 50 million rural connections will be rolled out in three years and, thereafter, a connection will be available on demand. The digital divide between rural India and urban India will be bridged. In order to extend financial support to infrastructure for cellular telephony in rural areas, the Minister of Communications will bring a Bill in the Budget session to amend the Indian Telegraph Act.

Power

74. Power generation in 2005-06 has so far shown a modest growth of 4.7 per cent because of shortage of fuel, mainly LNG and coal. The demand-supply mismatch continues. More efforts are required to augment capacity in generation, transmission and distribution. 82 projects are under construction and, when completed in one to three years, will add 33,000 MW of capacity in the public sector and 6,500 MW of capacity in the private sector. Of these, about 15,000 MW will come on stream by March 31, 2007.

75. Ministry of Power has invited bids for five ultra mega power projects of 4,000 MW each, of which two will be pit-head (in Chhattisgarh and Madhya Pradesh) and three will be coastal (in Gujarat, Karnataka and Maharashtra). It is our intention to award these projects before December 31, 2006.

76. Capacity addition alone is not enough; we need deep and durable reforms in transmission and distribution. In order to create an enabling and empowered framework to carry out these reforms, the Prime Minister will establish an Empowered Committee of Chief Ministers and Power Ministers.

77. A target of 3,075 MW of installed capacity for the Tenth Plan was fixed for non-conventional energy sources, including wind power. By December 31, 2005, that target had been exceeded and 3,650 MW of capacity installed. I propose to provide a sum of Rs.597 crore next year for non-conventional energy resources.
Rajiv Gandhi Grameen Vidyutikaran Yojana

78. All States have signed memoranda of understanding to implement the Rajiv Gandhi Grameen Vidyutikaran Yojana. 10,000 villages will be electrified in the current year and, in 2006-07, 40,000 more villages will be electrified. The key to the success of this programme is the engagement of franchisees and proper commercial and contractual arrangements for distribution, billing and collection.