Showing posts with label Haryana. Show all posts
Showing posts with label Haryana. Show all posts

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
 
For More IIPM Info, Visit below mentioned IIPM articles
 

Tuesday, April 30, 2013

National

Maruti Suzuki: labour unrest
Voilence leaves India Inc. aghast
Some are calling it a conspiracy while others say that it is purely an issue between labour and management. But the bloodshed at Maruti Suzuki’s Manesar factory in Haryana, which claimed the life of one senior manager and injured close to 100 others, has triggered fears of the bad old days of stubborn trade unionism. While Maruti is counted among the best wage providers in the Manesar industrial belt, 40% of the workers at the Manesar plant are hired on a contractual basis. As such their salaries could be about 50% of the payout given to the regular workforce. With rising aspirations of a young workforce and the company’s continuous efforts on cost cutting, the simmering discontent eventually took an ugly turn. A similar kind of unrest at the same plant last year had cost the company a whopping Rs.25 billion. This time round the figure could be even higher as the company may have to keep the plant shut for more than a month. For a plant that on an average rolls out a car every 13 seconds, the loss would be staggering. The lockdown will also affect production of the company’s bestselling Swift Desire diesel car. Apart from financial losses, this kind of forced shutdown will also damage India’s ambition of becoming a global automobile manufacturing hub.

wipro: profitable quarter
Good news for IT sector
Indian IT service provider Wipro Ltd. announced a 18.37% y-o-y rise in its consolidated net profit of Rs.15.80 billion for the first quarter of the financial year 2012-13. Unlike its larger peer Infosys, whose earnings results have failed to excite the market, Wipro good numbers have brought cheer to the IT sector. The company says its clients are resorting to more and more outsourcing in an attempt to reduce their operational expenses, and Wipro is looking to gain from its clients’ spending. The company also said that in today’s complex business environment, global corporations are increasingly investing in transformational technology initiatives to improve competitiveness. Wipro sees this shift as an opportunity for it to lead this change and help customers differentiate in this fast evolving market However, the company has projected a flat growth of $1.54 billion revenue from its global IT services for the second quarter (July-September) of this fiscal. Also, despite the increase in its profit, the third-largest software firm of the country has hit some speed bumps in terms of revenue earned in dollar. The company recorded a 1.36% dip in terms of dollar revenue for the first quarter this fiscal. IT services revenue in dollar terms was impacted by $25 million due to cross-currency volatility. IT services business accounts for 78% of the company’s revenue and 93% of its operating income, which at 21% in the first quarter was 1% lower y-o-y but fractionally (0.3%) higher sequentially from 20.7% in the previous quarter. In the June quarter the firm also managed to bag 37 new customers and employed 2,632 new employees in IT services. India’s $100 billion plus export driven outsourcing sector is facing a tough time as big clients from Europe and North America have cut down their overall spending.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles