Thursday, May 02, 2013

A weak power sector: What’s the cure?

Power blackouts that occurred recently have put the spotlight back on a troubled power sector. Grid failures, shortage of coal supply, financial losses, poor infrastructure & governance, and political finger-pointing are making matters worse

For some, it was their worst experience ever. For others, it was a repeat of the horror. We are referring to the blackouts that left over 680 million people in a state of darkness and despair for long hours together on July 30 & 31, 2012. But more than the unforgiving power cuts and crippled state of trains and metro rails that resulted from failure of three transmission grids in the country, it was the kind treatment offered to the one responsible for the disruption that embarrassed India, Sushil Kumar Shinde (the-then power minister), that made bigger headlines. Post the incidence, Moodbidri Veerappa Moily was made the power minister and Shinde was asked to take charge of a higher office in the government. [He is today the Union Home Minister.] When questioned over objections raised by critics on this move, Shinde clarified that he rated the performance of the power ministry under his tenure as nothing short of excellent. “I have briefed the Prime Minister’s Office... In USA, light does not come for four days. Here we got it in a matter of hours. People should appreciate how work is done at the grid,” was Shinde’s justification. [He was referring to a blackout in North America in 2003 that lasted 4 days.]

Starting 2.35 AM on July 30, the whole of North India experienced a power cut for 10 hours after the Northern Grid tripped. The next day saw a bigger outage hitting 19 States and two Union Territories when the Northern, Eastern and North-Eastern grids all went on the blink. An estimated 684 million people, or a-tenth of the world’s population, were left without power for up to 8 hours. Shinde was quick to blame States like UP, Punjab and Haryana for overdrawing power.

The event that lasted two days was just a bellyache – a symptom of the deep malaise that afflicts governance in the power sector in India.

On the face of it, many would assume that the power ministry has its task cut out for itself. But hasn’t it always been so? Are long power cuts new to India? Has the 100 million tonne gap between coal demand and supply just emerged? Are issues related to supply of coal and gas new? Or has the fact that over 400 million people still lack access to electricity just struck India?

The recent grid failures that won India international shame and exposed the lack of grid discipline in the Indian power sector, could act as a trigger to implement corrective measures to eradicate problems which the sector is reeling under. That would call for bold measures on the part of the new minister.

To begin with, he will have to put in place a system that ensures strict adherence to grid discipline (a present, violations due to overdrawing of power by various states are common). As per the Central Electricity Regulatory Commission (CERC), it had issued four directives to States not adhering to their set limits of drawing power. But to no avail. The reason – political compulsion. Moily though, claims that the guilty will be brought to book. “There is a provision to imprison authorities or the state chief secretary for disobeying grid discipline. Perhaps we need to enforce that,” he said.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
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