Addressing a function organised by Federation of Jharkhand Chamber of Commerce and Industries (FJCCI) Mr Shahi said power was a state subject and its production and distribution were state government's responsibility and the center's role was that of a facilitator only.
''When the states could not meet the production requirments, the center ammended power laws in 1974 to foray in this sector.
Currently the central institutions like NTPC are producing one third of the total power. We are also helping the states in transmission and distribution sector through schemes like Rajiv Gandhi rural electrification scheme," he said.
He said central government was giving ninety per cent of financial assistance to the state governments under Rajiv Gandhi rural electrification scheme.
Expressing concern over slow progress of Rajiv Gandhi rural electrification scheme in Bihar and Jharkhand both states he said 95 per cent of villages were still not electrified in both the states.
He said entire eastern area of the country including both states had ample of power production capacity adding 4000 MW of electricity was sent to different parts of the country from eastern area.
In context of Jharkhand, Mr Shahi said the state could produce 1200 MW of electricity and needed only 800 MW, adding but due to power theft and lack of distribution network, people in state were facing power crisis.
He said centre would not cooperate with state governments if they do not adopt franchisee policy for power distribution for Rajeev Gandhi Rural Electrification Scheme.
Mr Shahi said he was not in favour of privatisation, but believe in outsourcing as this could become a tool to check power theft.
Giving new definition for rural electrification, he said the process was not completed until ten per cent of the houses, community hall and health centres of the villages were electrfied.
He also appealed to industrailists to take power distribution as an industry.
UNI AM BA AB 1938