In an attempt to improve the power generation scenario, the government has asked the old power units to undertake modernisation and renovation under the Rs 10,000 crore (Rs 100 billion) scheme launched through two financial institutions.

"Government has launched the Rs 10,000 crore scheme through Power Finance Corporation and Rural Electrification Corporation. Old units operating below 50 per cent plant load factor (PLF) should seeks assistance from them to modernise their units," R V Shahi, power secretary, said at 'India Energy Forum' organised by Associated Chambers of Commerce and Industry, in New Delhi on Friday.

There has been a very significant improvement in the PLF to 73 per cent in 2002, Shahi said, adding some old power stations were still below 50 per cent PLF few years back.

There was a need to upgrade these units, he said.

He also urged the industry to exploit cheaper sources of energy and also asked the power companies to take advantage of the government's policy in generation and distribution areas.

Delhi's power minister Ajay Maken announced that the Delhi government was considering the proposals from two private companies -- Tata and BSES -- for setting up power units in and around the national capital.

Maken said both Tata and BSES, responsible for power distribution in Delhi, have given their proposals to set up their own power generation units around Delhi and the government was considering their proposals for land allotment.

Assocham has emphasised the need for promoting small hydro power plants, saying that would meet the power requirement quickly and also would prevent wastage of resources and create employment opportunities.

Addressing the conference, German ambassador Heimo Richter offered cooperation for enhancing 'green power' in India, an Assocham release said.

"Currently, one-third of the world's wind energy was being produced in Germany which has a share of eight per cent in 2003 as against 4.6 per cent in 1998 in the total power generation," he said, adding there was tremendous potential in cooperation between the two countries in promotion of the environmental friendly power.