The Hindu : PM's concern over power cuts

Online edition of India's National Newspaper
Thursday, May 29, 2003

Opinion

Opinion - Editorials

PM's concern over power cuts

TAPPING THE HYDRO-ELECTRIC power potential in the country is one of the many ways in which the imbalance in the demand-supply situation can be bridged. The Prime Minister's concern over the persisting phenomenon of power cuts in different parts of the country has not come a day too soon. It is true that several initiatives have been launched in recent years to deal with the multi-dimensional problems in the power sector — such as stepping up generation, streamlining and revamping transmission and distribution, pushing through critical reforms in the State Electricity Boards (SEBs) and working towards 100 per cent billing of all power connections. While launching the 50,000 MW hydro-electric power initiative of the Energy Ministry, the Prime Minister not only spoke out against the continuing power cuts in the villages, towns and cities, but also called for "even stronger response" from the States to reforms in the power sector. He considered the Electricity Bill a `new consensus and new determination' to set the sector in order. As part of the Ministry's initiative, a decade-old project adding 1,500 MW to the national grid from the Sutlej Jal Vidyut Nigam in Himachal Pradesh was also commissioned.

Both the Centre and the States know only too well that hydro-electric power projects offer the cheapest and `cleanest' form of energy and need to be tapped fully, before looking at other avenues. There is a fear that States are looking more at thermal or even nuclear power projects, if only because they can add more substantially to the capacity. But the Sutlej project has demonstrated how 1,500 MW can be generated, underground. With significant international collaboration, the Nigam has completed the project in ten full years. Because of the time and cost over-runs, the project cost has now been estimated at Rs. 10,000 crores. The hydropower potential in the Sutlej alone has been estimated at another 8,000 to 10,000 MW. The Power Ministry's current initiative to add 50,000 MW of hydro-power in 16 States needs to be followed up closely to ensure its time-bound implementation. Only 17 per cent of the 1.5 lakh MW hydel potential has been tapped in the country, and only 25 per cent of the power generated now is hydel.

It is quite possible that some States are at a disadvantage in hydel potential and may not be conveniently located for the setting up of thermal power units, in terms of port or rail connectivity to the coal mines. To cater to their power needs, the Centre is focussing attention on inter-regional transfer of power through the grid, so that energy from the surplus region can be shifted to the deficit States. Instead of getting trapped in financial management and reforms alone, the SEBs must look at overall power management to avoid power cuts or load shedding. Subsidies will have to be gradually reduced and guaranteed, quality power supply ensured to industries and high-tension consumers. After all, it is a vicious cycle — unless there is uninterrupted power supply, investments in industries will not come to a State and if existing industries find the energy situation in a State unsatisfactory, they wait for the earliest opportunity to shift to a more congenial environment. With the advent of the State Electricity Regulatory Commissions, the focus has shifted to not just tariff revisions, but consumer satisfaction and improvement in the `quality of power' supplied. Simultaneously, the SEBs have to ensure 100 per cent metering of all consumers, while the Governments have to make up their mind on whether they want to continue with subsidies to any section of consumers, and, if so, provide budgetary support. If they are not in a position to go in for private power generation at affordable prices, the SEBs must be enabled to step up their own generation to meet the growing demands and they will find hydel power the cheapest and best option.

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