To fix the crumbling power generation and distribution systems, the Modi regime has to crack down on the political class that promises free or cheap electricity. All other steps, such as amending the Electricity Act, are just cosmetic Inaugurating the first Renewable Energy Global Investors Meet & Expo (RE-Invest), Prime Minister Narendra Modi wondered how political parties could promise to supply electricity at reduced rates when their States are dependent on electricity supply from outside. The remark was targeted at the Aam Aadmi Party which, in its election manifesto, had promised to cut electricity bills by half, even as Delhi gets nearly 70 per cent of its power from other States. In 2015-2016, Delhi’s total power requirement is expected to...
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Category: Demand vs Supply
Stop cult of power freebies
Inaugurating the first Renewable Energy Global Investors Meet (RE-Invest), prime minister Modi castigated political parties for promising to supply power at reduced rates saying how could they make such promises when the concerned states are dependent on electricity supply from outside. The remark was targeted at Aam Aadmi Party (AAP) which in its election manifesto, had promised to cut electricity bills by half even as Delhi meets nearly 70% of its power requirements from other states. In 2015-16, its total requirement is expected to be over 6000 MW; so it will draw 4200 MW from other states. However, it would be imprudent to dismiss this as a political statement directed at AAP alone. Cutting across party lines, Modi was making...
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India’s power sector on the ‘brink’
Power supply to industries, businesses, agriculture, households etc is akin to blood circulation in the body. Just as stoppage of blood supply to any body-part renders it dysfunctional, disruption in power supply has same effect on economic activity. Minister for power and non-conventional energy, Piyush Goyal had precisely this at the back of his mind when he promised that Modi government will ensure un-interrupted power supply 24 hrs a day through out the year to every household and industry. To achieve this goal in an environment friendly manner, government has declared its intent to set up in next 5 years 100,000 mw each of power generation capacity based on ‘solar’ and ‘wind’. This coincides with Modi’s visit to USA where...
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Consumers fleeced yet, power companies lose – can CAG unravel mystery?
Aam Aadmi Party (AAP) commitment to reduce electricity rates by 50% generated some hope for consumers in Delhi who had suffered steep increase in power tariff by nearly 70% since privatization of distribution in 2002. AAP has been in power for almost 6 weeks and yet hapless consumers have no relief in sight. Government is yet to give effect to a cut of 50% for consumption up to 400 units a month announced on assuming office. Meanwhile, Delhi Electricity Regulatory Commission (DERC) has hiked in power purchase cost adjustment charge (PPAC) by 6-8%. Even worse, an imminent cut in supply haunts them due to a threat given by NTPC (it supplies around 50% of Delhi’s power need) as power distribution companies...
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