The annual economic survey of 2007 has painted a grim picture of the power sector as it stood at the end of the 10th Plan. Not only has the target for generation of additional power generation as well
April 25, 2007 (Press Release) --
The annual economic survey of 2007 has painted a grim picture of the power sector as it stood at the end of the 10th Plan. Not only has the target for generation of additional power generation as well as capacity installation been missed in two successive five plans, it is a matter of serious concern that the losses incurred by state power institutions and electricity boards have recorded a fresh record in 2006-07.
Over the years it has been seen that the Central Government can actually do very little to ensure that the state governments that state Electricity Boards fall in line with the provisions of the Electricity Act and begin to implement reforms in the power sector in letter and spirit.
From its side, the Centre has tried to offer some incentives to the erring states, by coming up with a memorandum of understanding to implement power sector reforms. A significant share of the cost of effecting these reforms can be met by the Centre, under the Memorandum of Understanding. Also, Finance Minister Mr. P. Chidambaram in the 2007-08 budget has stepped up the allocation under the Accelerated Power Development and Reforms Project in a bid to reduce the aggregate technical and commercial losses.
Maharashtra and Mumbai seem to be in deep trouble in the power sector so is West Bengal and capital city Kolkata. Andhra Pradesh, Karnataka and Tamil Nadu are said to be trying all means to buy additional power to meet the projected peak demand in the coming summer months.
Some of these electricity boards would be prepared to buy power at a thrice higher rate of Rs. 6 per unit in place of the usual cost of generation that hover between Rs. 2 and Rs. 2.50 per unit on their own.
Because of such emergency purchases the subsidies incurred in power supply, and above all aggregate technical and commercial losses including transmission and distribution losses that the states incur, the total losses sustained by state electricity boards for 2006-07, have piled up to a colossal Rs. 26000 crores.
A recent Ministry of Finance report submitted on development of Mumbai to make it an international finance centre has suggested that the city's governance should change from the current third world standards to first world, to make that IFC status possible. Amongst other things the deficiencies in Mumbai include poor provision of power, water and sewerage. It is high time the Maharashtra government woke up to this reality.
The scenario in West Bengal's Kolkata is no different. Even if one were to put aside the disruptions at Nandigram aside development of West Bengal remains at best a question mark. Basic infrastructure of internationally acceptable standards is not in place. Asian Development Bank has offered loans and the Centre must also pitch in with additional finances for infrastructure including the power scenario to improve.
A perusal of the economic survey would indicate that power generation in many states seems to have been hampered for several reasons lik
Over the years it has been seen that the Central Government can actually do very little to ensure that the state governments that state Electricity Boards fall in line with the provisions of the Electricity Act and begin to implement reforms in the power sector in letter and spirit.
From its side, the Centre has tried to offer some incentives to the erring states, by coming up with a memorandum of understanding to implement power sector reforms. A significant share of the cost of effecting these reforms can be met by the Centre, under the Memorandum of Understanding. Also, Finance Minister Mr. P. Chidambaram in the 2007-08 budget has stepped up the allocation under the Accelerated Power Development and Reforms Project in a bid to reduce the aggregate technical and commercial losses.
Maharashtra and Mumbai seem to be in deep trouble in the power sector so is West Bengal and capital city Kolkata. Andhra Pradesh, Karnataka and Tamil Nadu are said to be trying all means to buy additional power to meet the projected peak demand in the coming summer months.
Some of these electricity boards would be prepared to buy power at a thrice higher rate of Rs. 6 per unit in place of the usual cost of generation that hover between Rs. 2 and Rs. 2.50 per unit on their own.
Because of such emergency purchases the subsidies incurred in power supply, and above all aggregate technical and commercial losses including transmission and distribution losses that the states incur, the total losses sustained by state electricity boards for 2006-07, have piled up to a colossal Rs. 26000 crores.
A recent Ministry of Finance report submitted on development of Mumbai to make it an international finance centre has suggested that the city's governance should change from the current third world standards to first world, to make that IFC status possible. Amongst other things the deficiencies in Mumbai include poor provision of power, water and sewerage. It is high time the Maharashtra government woke up to this reality.
The scenario in West Bengal's Kolkata is no different. Even if one were to put aside the disruptions at Nandigram aside development of West Bengal remains at best a question mark. Basic infrastructure of internationally acceptable standards is not in place. Asian Development Bank has offered loans and the Centre must also pitch in with additional finances for infrastructure including the power scenario to improve.
A perusal of the economic survey would indicate that power generation in many states seems to have been hampered for several reasons lik
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