Sandesh Prabhudesai
8 August 2000
Though privatisation was initially a slogan for building infrastructure of power in the country, the centre now realises that private generation alone cannot solve the power problem. It also requires other important remedial measures.
"We have no other alternative than going for private power generation", admits union power minister P R Kumaramangalam, but stresses more upon good, efficient and honest management for transmission and distribution with minimum losses rather than privatising that too.
"Nationalisation was a slogan during my father's time while people talk about privatisation these days. I am not prepared to blindly believe in both the concepts. You choose the best which can give quality power at the cheapest possible rates", he opines.
Though the production cost of the power is around Rs 2.50 per unit, the actual cost rises to Rs 4 today while only Rs 1.60 is collected as revenue returns, which is not even 10 per cent. Kumaramangalam also discloses that the actual T & D losses are almost 37 per cent against the officially projected figure of mere 23 per cent.
He also expresses helplessness in meeting the demand of around 100,000 MW of power within a decade by spending over Rs 11 lakh crore. Due to financial crisis, the country has lagged behind by almost 14,000 MW of power generation against estimated 28,000 MW in the ninth five year plan, he adds.
While almost 3700 MW is presently being generated through private grid, Kumaramangalam also informs that 23 projects are being sanctioned to generate around 7800 MW while 19 more are in the pipeline which will generate 8000 MW.
But this may not help overcoming the power crisis in totality, he opines, while listing out three priority areas to improve the power situation in the country. Besides reducing power thefts as a remedial measure, he also stresses upon introducing moderns remote metering system as well as rationalisation of power tariff.
Rather than going for privatisation of T & D to reduce the losses and provide quality power, the power minister feels even the state-run electricity departments or boards can achieve it, provided it is managed 'efficiently and honestly'. Tamil Nadu and Kerala Electricity Boards are the best examples of it, he adds.
He was in Goa this weekend to lay foundation stone of a long-pending 400 KV Kolhapur-Mapusa transmission system worth Rs 182 crore, which would increase Goa's power transfer capacity to over 600 MW from the existing one of 190 MW. Except a mini private project of 50 MW, Goa does not generate its own power but wheels it through the national grid from Maharashtra and Karnataka.
As the electricity department is suffering huge losses due to power purchase agreement signed with the private generator at the cost of Rs 5 per unit, Kumaramangalam has now advised the state government to work out a new system which would shift its fuel base from naphtha to cheaper mode.
He has also assured financial help to the tune of Rs 50 crore to improve power infrastructure in the tourist state, including Rs five crore for cent per cent metering and Rs 13.5 crore for strengthening power supply in the form of grants while rest of the amount would be released as a loan.
This could help the international tourist destination to overcome the acute power crisis the state is facing, which has also brought its industrial development to a grinding halt with the high court presently monitoring the release of power in stages, as per the availability.
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