Bangalore: Industry body Assocham on Tuesday expressed grave concern over the Karnataka government's notification forbidding producers from supplying power outside the state thereby creating a major hindrance to implementation of open access regulation.
"The state government must review its decision and not reward the power producers with disincentives," Assocham secretary general D S Rawat said in a statement here.
"Considering the extent of power shortages across the country, instead of invoking Section 11, Section 37 or Section 108 forbidding power exporters to supply power outside Karnataka, the state distribution companies must plan power procurement in advance and issue tenders for procuring power," said Rawat.
In its preamble the Karnataka government has notified that their demand for power will rise by about 10 per cent to about 200 million units and the only option available is to tap power exported to other states, the statement said.
"Such notifications are not a feasible solution to the long term and mid-term power purchase agreements. Besides, if such a scenario persists it will severely hit growth and development process in the power sector and power deficit states like Andhra Pradesh, Madhya Pradesh, Maharashtra and Punjab in all probability might soon follow suit, cautioned ASSOCHAM.