Tuesday, March 13, 2007

A (power)house of dreams......

The Union Minister for Power (boy, he sure must be a powerful dude...) had stated in the Rajya Sabha yesterday that India would go from its current power-deficit status to a electricity-surplus status within five years. Mind you, he has said five YEARS, and not five DECADES. This surely calls for some celebration, and I am sure that Aditya and Maya would be ecstatic, to say the least.

Now, let's get back to reality, and investigate how the Hon'ble Minister proposes to achieve this great task, that too within such a short time frame. Statistics quoted by the Minister reveal that as of date, India suffers a mind-boggling 70,000 MW deficit. I am surprised. I mean, considering that we have had such hair-brain proposals, politicization of the state electricity boards, rampant corruption, large-scale distribution losses, this would seem to be an achievement in itself that we haven't crossed the 1 lakh mark yet. Felicitations!

So now, what does this 'Five Year Plan' have in store for the nation? Well, ultra mega power projects with single generation unit of 4000 MW would be launched. I wonder: if this is what an ultra mega power project can muster, how would we describe an initiative generating 10,000 MW? Super Ultra Mega, perhaps? Suggestions are most welcome...

Next, the Hydroelectric Policy is to be amended to tap the 150,000 MW potential in the North-East. That's simply amazing! I mean, we have had this entire potential all this while, and we were what, sitting on our backsides suffering a deficit? Either we are the world's biggest idiots, or this potential has arisen suddenly from the depths of the earth or come down from the lofty heights of the Himalayas.

The private sector also is being 'encouraged' to set up captive generating capacities. Let me understand this: the government actually wants competition? And that too competition which will definitely show them in a worse light? (Not that they are any better off now, but heck they still have some standing, non?)

The Tatas have been in this business for over a century now, and they still cannot sell their electricity to non-industrial consumers. This was a restriction laid down by the then incumbent British establishment to prevent an indigenous private sector power utility to become too strong. Of course, the Tatas didn't leave with the backs to the Taj at Colaba, did they? And our thick-headed politicos and babus never quite realized that this was a restriction that should have gone out along with the Union Jack over the Red Fort. So the Tatas, a genuine private sector entity, suffer from the 'encouragement' that the State has provided so far.

Reliance is comparatively better off, but then it enjoys a monopoly in a sense, and I figure it was obvious that they would, considering that they have so much political muscle to flex for them. And its record on consumer relations doesn't exactly endear one to the idea of private sector entities in power generation and distribution.

One more pointer, maybe to the Left parties: We are getting foreign companies as well, but only from Russia and China. The rest may not bother applying. So, you needn’t cry yourself hoarse about selling out the nation. I say, Mao and Stalin would have been pleased with this state of affairs.

All said and done, this is a ‘powerful’ speech, meant to ‘electrify’ the nation, and ‘brighten’ up the darkest enclaves of the country. I just hope no one turns the switch off.

P.S. Although I may seem all sarcastic, in my heart, I pray that the Minister's initiatives bear fruit, and the troubles afflicting us go away. It will not be easy, but then Rome was not built in a day, was it?

8 comments:

Anonymous said...

Hey, I like your sarcasm.

I'm guessing this summer we'll have power-cuts in Mumbai as well. Which sucks, but what can ya do?

Vivek said...

As regards the power-cuts, I hope not. But then, yah, what can one do but suffer in silence?

Anonymous said...

The advent of the private sector is not that promising. They have a very easy solution,
decrease the power consumption, which they do by overcharging the people as proposed by Reliance.
At the end of the day, the phe problem remains, what incerases is their bank balance.

The government must think before thaking such a step, and think right.

Vivek said...

The advent of the private sector is a good thing. The State has no business being in manufacturing. It may at best be a regulatory authority, no more. Attempting to actually produce the goods, and then trying to regulate the industry does present a lot of scope for conflict of interest.
Moreover, state-owned utilities are vulnerable to populist schemes, which are more often than not financially inviable.
You have stated the problem of over-charging. This is a problem, yes, and needs to be resolved, but there is lack of political will to deal with it. No prizes for guessing why.

aditya said...

I am not at all ecstatic to learn about this development. I am quite sceptical of what will be accomplished in reality. Such kind of statements are made very often by these gas-bags(politicians) just to appease the masses. We too being gullible, believe it, and any person who begs to differ is termed a cynic/pessimist/infidel. The Ratnagiri Project was to have started in full flow by now! The Iran-Pak-India gas pipeline too has died a slow death because of bureaucracy and petty politics.

As for privatising, it would do wonders. Incentivising consumption is not a bad idea, as that could be the solution to grapple with the never-ending power crisis. As for the State, the lesser said the better.

Pranav said...

More than encouraging the private sector we should first cut down on the losses due to theft and bring the corrupt to justice.The state elctricity boards are in dire needs of a change in policy.Too much of red tape has made them so sick that even the tonic of privatisation may take quite a few years for everything to start moving at a decent pace

Vivek said...

Adi: Ecstasy is rarely inspired or brought about by listening to or reading government resolutions, so can't really blame you for feeling the way you are feeling.

Pranav: Well said, and I concur completely.

Maya said...

Great blog!Nice style :-)

Hmmm...Proposals galore!!! Do we ever have a shortage of proposals from politicians?They don't think about the viability or possibilty of anything before making a speech on it.And then later,of course,there comes a stupid clarification that it wasn't intended 'that'way,they were misquoted/misinterpreted etc etc...

I don't believe a word of it and won't bother till they've actually finished with it.We've managed with power cuts for 2+ years with lots of complaints ;-);5 more years to go according to the Power Min then,till we find some relief,is it?
Lets raise a toast to our heights of patience(as also to the depths of shamelessness)...

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