NEW DELHI. Dec 11 Indian Prime Minister Atal Behari Va-jpayee defended Monday a new electricity’ bill that has triggered protests from power workers fearing the impact of privatisation. reports AFP.

"A new electricity bill is on the anvil ... power sector reforms have now entered the stage of consolidation." Vajpayee said at a function here.

Power workers including engineers. threatened an indefinite general strike last week, in case a one-day agitation on Tuesday fails to dissuade the government from going ahead with the privatisation of the energy’ sector.

The electricity bill Is expected to be introduced in the current session of parliament, which ends on December 22. marking the first step towards privatisation.

India needs an estimated 252 billion dollars of investment In the next decade to generate an additional 100.000

megawatts of power to meet its shortfall.

Of India's total generation capacity, nearly a fifth is lost in transmission, distribution and large-scale theft.

"Nearly 80.000 villages do not have access to power ... the number of households that have electricity is below 50 per cent." Vajpayee said, adding that bold initiatives were needed to improve the situation.

Since-power generation is so capital intensive, the government alone cannot meet all the demands for funds, he said.

State governments are being encouraged to reform so (hat production and supply "become commercial enterprises that are self-sustaining even while benefitting consumers.” Vajpayee said.

Top mutual fund eyes insurance business BOMBAY. Dec II Indias largest mutual fund, the state-

owned Unit Trust of India (UTH. plans to break into the insurance sector, officials said Monday. reports AFP.

We are definitely keen to enter the insurance business. Plans are on the drawing board." UTI chairman P.S. Subrahmanyam told AFP on the sidelines of a management school conference.

Subrahmanyam said UTI was looking at both the life and general insurance sectors, but declined to put a time frame on the plans or who would be IITTs partner in any future venture.

"Many people are talking to us." he said, adding that the plans were part ol an expansion strategy to build UTI into a major financial service provider.

"Unlike several other interested companies we did not believe in signing in-prm< iple agreements for the insurant < business early on as there was a lot of uncertainty about government policy.