Bangalore, Aug. 27 (PTI): The Planning Commission today urged states to expedite implementation of ‘open access’ system in the power sector that allows electricity utilities to make use of distribution networks of other companies.

Delivering a lecture on the ‘Indian economy ? Vision 2020’, organised by the Bangalore Chamber of Industry and Commerce here, the plan panel’s deputy chairman Montek Singh Ahluwalia said many state governments appeared to be reluctant because they did not want to lose their preferred consumers.

“The introduction of the ‘open access system’, which under the Electricity Act 2003 enables the energy utilities to use distribution networks of other companies to supply power to consumers, will help in building competitive pressure,” he said.

The system will have to be put in place by the state governments by 2009, according to the Act.

Terming the progress in the power sector as disappointing and the scene as having grown more complex, Ahluwalia said only the state governments had to do something about it as the power sector was outside the purview of the Centre.

The core problem area continued to be distribution ? the estimated electricity loss was as high as 44 per cent. “The money could be brought in by ensuring incentives and bringing in reforms in distribution,” Ahluwalia pointed out.

The failure of upgradation has seen this sector not performing as well as expected. Industries are of the view that power supply is unreliable and expensive, too.

Water

The underutilisation of water resources and irrigation projects and the failure to link laboratory research to the farm were major stumbling blocks in achieving the targeted growth of 4 per cent in the agricultural sector, Ahluwalia said.

The growth in the agriculture sector had declined from 3.2 per cent to around 1.5 per cent, Ahluwalia said.