The parliamentary standing committee on energy has asked the government to take result-oriented steps to revatilise the Dabhol power project.
Accordingly, DPC Phase I should be restarted and Phase II be operationalised as soon as possible, it said.
In its 40th report tabled in the Parliament on Tuesday, the committee asked the government to study the possibility of merger of Power Finance Corporation with Rural Electrification Corporation.
It said that as far as possible no two public sector units should discharge similar functions.
"The committee therefore feel that there is a need to study the possibility of merging these two PSUs," it said.
It noted that both these units are developmental finance institutions in the power sector, financing similar schemes like generation, transmission and system improvement.
Furthermore, the scope of REC's functions has been expanded to provide assistance to projects in both rural and urban areas.
The group also suggested review of mega power policy, recommending inclusion of hydel power projects with a capacity of 100 MW and above.
It said that under the current policy only hydel projects with a capacity of 500 MW and more are eligible for benefits and expressed concern over the deteriorating thermal-hydel ratio in the country.