Cabinet approves Power System Development Fund

NEW DELHI: The government approved the proposal of the Ministry of Power for operationalisation of the Power System Development Fund.

"Power System Development Fund (PSDF) will be utilised for creating necessary transmission systems of strategic importance based on operational feedback by Load Dispatch Centers for relieving congestion in Inter-State Transmission Systems," Finance Minister P Chidambaram told reporters here after the Cabinet meeting.

The fund will also be utilised towards installation of shunt capacitors, series compensators and other reactive energy generators for improvement of voltage profile in the grid.

Installation of standard and special protection schemes, pilot and demonstrative projects, and for setting right discrepancies identified in protection audits on regional basis.

Renovation and Modernisation (R&M) of transmission and distribution systems for relieving congestion and any other scheme or project in furtherance of the above objectives, such as, conducting technical studies and capacity building, etc.

PSDF will be operationalised within three months, he said.