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Experts stress need to plug power theft

Badal Sanyal

KOLKATA, Nov. 29

FUTURE investment to create additional power generating capacity may prove to be futile unless effective measures are taken to plug electricity theft, reduce transmission and distribution (T&D) losses, and progressively minimise cross-subsidies, accordin g to experts.

They were speaking at a roadshow on power awareness titled Mission 2012 - Power for All, organised by National Thermal Power Corporation (NTPC) on behalf on the Union Power Ministry.

Mr K.K. Sinha, Director (HR), NTPC, said that the Centre had ambitious plans of creating 1,00,000 MW of additional capacity by 2012, entailing an estimated cost of about Rs 4,00,000 crore.This would be followed by a matching investment for development of transmission facilities.The additional capacity was to be created to bridge the widening gap between demand and supply.

But Mr Sinha expressed concern about the return on investment if there is no attitudinal change by the users of power.

He felt that the country would be able to save an estimated Rs 20,000 crore per annum by plugging electricity theft by industrial consumers. The amount could then be ploughed back to create more generation capacity.

Mr Sinha also said that the power generating companies could currently realise, on an average, only 65 per cent of the cost of power.

They also had to absorb losses arising out of 20 per cent T&D loss, about 30 per cent electricity theft and a substantial amount for cross-subsidies being offered to agriculture and rural areas.

"In such a scenario, I am not sure about future investments in the power sector unless reasonable returns are ensured," he added.

Mr A.M. Chakraborty, Principal Secretary in the West Bengal Ministry of Power, urged the public to co-operate with the administration in checking power theft.While stressing the need for cost-effective technology in generation and transmission of power, he said that no State would be able to supply uninterrupted power (even to genuine consumers) if it is asked to do so at subsidised rates.

He also said that there would be severe power shortage in the country as many generating companies could close down because of paucity of funds.

Dr Sujoy Basu, head of the Electrical Engineering Department of Jadavpur University, said that 15 per cent of the total generated power in the country was being stolen by the organised sector. This had to be checked by the local administration.

Stating that foreign investment in the power sector was likely to decline in future, Dr Basu said that the emerging scenario would offer growth opportunities to public sector companies such as NTPC and other domestic private companies. He also urged the decision market to supply subsidised power to 40 per cent of the total population who remain below the poverty line.