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: Fuel linkages
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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Cleansing the maligned coal sector in India
In August/September, 2014 when Supreme Court (SC) declared all 218 coal blocs allotted since 1993 ‘illegal’ followed by de-allocation of ‘all’ except 4 [2 of these are with PSUs viz., NTPC and SAIL and other 2 are for ultra mega power projects (UMPP) given under competitive bidding], this led to a hue and cry. The associations representing the beneficiaries of illegal allotments – in their presentations before SC – submitted that investment to the tune of about Rs 250,000 crores in development of coal mines and another Rs 400,000 crores in setting up of end use projects viz., power, steel, cement etc would be at risk. Commentators too joined the chorus opining that this will affect availability of domestic coal...
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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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Coal thieves chanting growth mantra
On August 25, 2014, the Supreme Court (SC) pronounced 194 coal blocks allocated since 1993 ‘illegal’ as all these allocations suffered from what it described as ‘vice of arbitrariness’ and showed no concern what so ever for public/national interest. The judgement vindicates findings of Comptroller and Auditor General (CAG). In its report (August, 2012), CAG had estimated loss due to such arbitrary allocations made during 2006-2011 to be Rs 186,000 crores or US$ 31 billion (based on price at which coal is sold by CIL). This would be many times more if computation is done using price of imported coal. At another level, the judgement has created consternation among beneficiaries of illegal allotments. They are crying horse if these allocations...
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