Chaturvedi is leading a panel which was created to issue a report on modalities for the National Electricity Fund’s operations. In a meeting conducted on April 29, 2009, the report was given final shape. Rural Electrification Corporation Limited and Power Finance Corporation Ltd state-run companies would be the nodal agencies to supply finance to state utilities.
The agencies would gather nearly INR300 billion to INR400 billion annually from the financial institutions and domestic market. The agencies would be assisted by the government through interest subvention.
The Planning Commission also recommended that the support of Asian Development Bank and World Bank could be pursued for enhancing electricity transmission and distribution network in India. Once the plan panel sends its report for submission to the power ministry, it would pursue required authorizations from the government for establishing the fund.
