EGoM lays development theory in place

EGoM lays development theory in placeFor years, the power sector in India is struggling with the issues related to delay in a range of clearances for projects. Today, near about 94 power projects are stalled due to want of clearances in various ministries. According to the power ministry, once these projects are cleared, an additional 37,000 MW of power can be generated. However, lack of co-ordination within the ministries emerged as one of the primary drawbacks, curtailing the growth of power sector. There is a pressing need of an institutional mechanism for speedy implementation of power projects in the country.Realising this, the government has constituted an Empowered Group of Ministers (EGoM) which is helping improve coordination within various ministries such as coal, environment and forests, and water resources. Therefore, the EGoM is helping in obtaining several clearances, thereby offering improved process of implementation tremendously.Setting up of ultramega power projects (UMPPs) also got a boost with the EGoM’s clearance of standard bidding documents (SBDs) for implementing the new Case-II thermal power plants. The development is expected to bring in transparency in bidding procedure and would take care of risk associated with fuel-price volatility and fuel availability.The domestic electrical and power equipment manufacturers are also finding difficulties to compete with imports. The revision in SBDs will make it mandatory to source equipment from domestic manufacturers for UMPPs, thereby offering a level-playing field for them.Also, in an aim to quickly resolve infrastructural issues and ensure speedy implementation of power projects in the northeast, the government has recently announced setting up of an EGoM. India is in the process of procuring power from neighbouring countries like Bhutan, Nepal and Bangladesh. An efficient power infrastructure across northeast together with support from these countries would augment power supply in the country.Please do send me your comments at

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