Underutilised funds: CERC plans to review PSDF norms

The Central Electricity Regulatory Commission (CERC) has proposed to review the regulations for the power system development fund (PSDF) to smoothen the process of project approvals under the scheme. The development comes at a time when less than 18% of `10,894 crore sanctioned under the PSDF remains utilised.

The fund was formed to make the power transmission system more free flowing, improve the grid’s voltage profile and renovate transmission and distribution systems. According to the new proposals of the CERC “based on experience achieved so far”, the scheme may avoid the multiple levels of scrutiny during the approval process. Since there are various committees to oversee utilisation of these funds, existing provisions for the same need to be reviewed to avoid conflicting interpretations of the norms by multiple authorities, the power regulator said.