MUMBAI, June 27: The state government has decided to allow private enterpreneurs to set up their captive power plants in the state by forming a separate sister concern in order to make their power projects economically viable, according to State Deputy Chief Minister Gopinath Munde.

Addressing the annual general meeting of Indo-American Chamber of Commerce here today, Munde said this decision was made as per the suggestions made by the industry to operate their captive power plant economically viable even by selling additional power to other customers.

Munde said already three out of five captive power generating plants had been sanctioned by his government. Besides, the state government is embarking upon a major programme of increasing the power generation from the present 11,500 MW to 20,000 MW in the next five years with an estimated investment of Rs 30,000 crore, mostly from private and joint sector companies.

Meanwhile, outgoing US Ambassador Frank Wisner on Friday called upon the Maharashtra government to do away with red tapism to attract foreign investors. "Ignoring the issue or deferring action will sooner or later adversely affect the state," he said.

Wisner was delivering an address on "Bilateral engagement, global impact: the future of Indo-American relations" at the IACC AGM here. He said US firms rate the investment climate in Maharashtra as either good or excellent. However, "the one problem cited most often was red tape of an incredible volume and variety."

According to the US embassy study on American investment patterns in India, the value in Maharashtra far exceeds that in any other state. Of the total investment in India of $1,339 million until the end of 1995, Maharashtra accounted for 45.2 per cent or $605 million.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.