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The coming Dark Age of India
- Andhra Pradesh, Kerala, Tamil Nadu, West Bengal, Delhi, Haryana, Uttar Pradesh, Madhya Pradesh, Maharashtra… no, this is not a listing of States with high growth. These are States that imposed rolling power cuts
- There are two mainly. First, a conundrum over fuel, which, even a couple of years ago was non-existent. And second, a mess created by the inability of state electricity boards and distribution utilities to charge consumers the right price for the electricity they consume leading to losses.
- In the first four years of the current Plan period ending 2012, coal demand, mainly for power generation, grew by 7.3 per cent but coal output grew by just 5.4 per cent.
- Though 194 blocks have been allotted for coal production to public and private companies, only 28 have commenced production. This is mainly due to problems of environmental clearances and “no-go” policies for mining.
- Imports were an option till recently, but not anymore. Countries such as Indonesia that have large coal reserves are clamping down on exports and making it more expensive and difficult for buyers.
- Gas output from the KG Basin now is less than half of what was projected as possible by Reliance and even this is being supplied to fertiliser companies on priority basis. Imported gas is an option but it is expensive.
- Hydel power, supposed to be environmentally-friendly, has ironically run into trouble with the green lobby.
- NHPC was forced to halt work on two of its projects in Uttarakhand after pressure from environmentalists.
- Hydel projects have always been sensitive anyway due to submergence of land.
- If we thought that nuclear power will be our long-term saviour that hope is also now fading away.
- With the performance of the French EPR reactor being questioned after the experience in Finland where it ran into time and cost overruns, it appears unlikely that the first of the planned ones at Jaitapur will ever take off.
- Germany, which will be totally off nuclear power by 2021, is being widely quoted as an example for us to move away too.
- Ratings agency Crisil estimates that distribution utilities alone had a cumulative loss of between Rs.35,000 crore and Rs.40,000 crore as of 2010-11.
- According to a Crisil report, the total debt of state electricity boards and distribution utilities touched a huge Rs.3-lakh crore or Rs.3 trillion as of March 31, 2011.
- The same report estimates that as much as a third of the 56,000 MW of thermal generation capacity is in trouble due to the combined impact of fuel and financial problems.
- We need positive, clear-headed reform measures to be undertaken, including passing on full prices to consumers who can bear them and subsidising the genuinely poor.
