BUSINESS

Panel slashes PowerMin's budget outlay

Source:PTI
February 09, 2010 18:07 IST

The Planning Commission has recommended cutting short the Budget outlay of the power ministry by over 25 per cent to Rs 10,630 crore (Rs 106.3 billion) for the next fiscal against the ministry's demand of Rs 14,430.50 crore (Rs 144.3 billion).

In a recent letter to the power ministry, the Planning Commission recommended allocation of Rs 10,630 crore (Rs 106.3 billion) gross budgetary support for the ministry.

The Plan panel's recommendation came in view of the need to bring down the fiscal deficit in 2010-11 to 5.5 per cent of the gross domestic product from the projected 6.8 per cent this fiscal.

The Plan panel also recommended Rs 50,121.42 crore (Rs 501.21 billion) for internal and extra budgetary resource, the same as demanded by the ministry.

The power ministry had proposed Rs 14,430.50 crore (Rs 144.3 billion) GBS as a part of its plan expenditure and Rs 50,121.42-crore (Rs 501.21 billion) IEBR.

In fact, the demand from the ministry was itself slightly less than what demanded by power companies like NTPC, NHPC, Power Grid Corporation and Power Finance Corporation.

They had asked for a GBS of Rs 14,469.42 crore (Rs 144.69 billion) and IEBR of Rs 50,121.42 crore (Rs 501.21 billion) for the fiscal 2010-11.

The exact GBS and IEBR would be decided by the finance ministry in Budget, to be presented in Parliament on February 26.

Source: PTI
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