The task force on power, headed by Planning Commission Member N K Singh, will submit its report to the government by the end of this month.
"We will submit our report by the end of this month," power secretary R V Shahi, who is also the convenor of the panel, said.
Speaking at a debate on the forthcoming tariff policy, organised by the Confederation of Indian Industry, Shahi said the policy, a draft of which had been circulated earlier by the government, would try to strike a balance among the stakeholders in the sector.
Following opposition from power sector regulators as well as state electricity boards to its discussion paper on the tariff policy, the government had mandated the task force to include tariff policy as part of its terms of references.
The panel has also been asked to provide suggestions on ways to spur investments in the sector and take steps needed to meet the targets for generation, distribution and transmission capacity augmentation.
Shahi said the health of state electricity boards was improving with as many as 10-11 states having reduced losses, leading to a saving of Rs 6,000-Rs 7,000 crore (Rs 60-70 billion).
He said the tariff policy was only a part of the process of reforms and would help in improving the paying capacity of consumers.
Shahi also criticised private players for not coming forward to invest in the sector. Shahi said while the doubling of generation capacity was needed to meet unsatisfied demand, new capacity would be added only at higher cost.
Speaking at the debate, Reliance Power chairman D V Kapur said plan of adding another 100,000 MW of generation capacity was destined to meet the same fate as the earlier plans.
The government has set a target of adding 41,000 Mw of capacity by the end of Tenth Five-Year Plan (2002-2007).
In response, Shahi said efforts were being made to achieve the target.
"The target is achievable and not impossible. Without a target we will get nowhere," he added.
Terming the targets as a mere wish-list, Kapur said government should make efforts to see whatever maximum targets can be realised in the next 8-10 years.
A realistic scheme should be thought of as sacrosanct only after it is drafted and thoroughly debated, he added.
Kapur said the government should reconsider the taxes and duties imposed on the sector. "A reduction would spur further investments, create more income and generate additional revenue," he said.