Uninterrupted power supply is something that everyone in western world would take for granted. But in India, for most parts of the country this remains a much desired distant dream. 24*7 power supply is not merely a statistic for flaunting, but has a profound impact on the lives of the people, both economically and socially. It helps children study longer, helps in improving the safety for women and allows more economic activity in the villages. A more reliable power supply in villages also reduces migration to cities as better social and economic activities are now available in the village itself.
Now let’s take a look at two states (Gujarat and Delhi) and how they did as far as power sector is concerned. I am picking up Delhi for comparison with Gujarat as this is usually touted by Congress as one of their best performing states.
Delhi
Delhi, here Sheila Dixit/Congress has been in power for almost 15 yrs. and the state power sector is in shambles and frequent power cuts are a norm. Situation in Delhi power companies is precarious. The five power generation companies in Delhi that together contribute under 2,000 MW to the Delhi power pool are on the verge of closure on account of severe financial crises brought on by non-payment of dues by the power distribution companies (Discoms) – BYPL and BRPL (BSES Rajdhani Power Ltd). As on date, the Discoms owe Rs.3,400 crore to the power generation companies (Rs.2,700 crore) and Delhi Transco Limited (Rs.700 crore). The power generators are threatening to pull the plug. This would throw large parts of the national capital into darkness.
Gujarat
Narendra Modi has been in power in Gujarat for around 12 yrs. In 2001 when Modi became Chief Minister power sector was in shambles. A decade later it is at the forefront of states that have carried out sweeping power reforms, as a result of which it now has surplus power. In October 2001, he found the state's power situation grim. The Gujarat State Electricity Board, or GSEB, had posted a loss of Rs 2,246 crore for 2000/01, on revenues of Rs 6,280 crore. Interest costs alone were Rs 1,227 crore. Transmission and distribution, or T&D, losses were a substantial 35.27 per cent, and load shedding was frequent. GSEB had no funds to add generation capacity on its own, nor was it able to persuade the private sector to invest. Modi knew that power in necessary for growth of Gujarat.
He soon got on with reforming the sector in Gujarat and the state electricity board posted its first profit of Rs 203 crore - after tax - in 2005/06. By 2010/11, net profit had risen to Rs 533 crore, while T&D losses had fallen to 20.13 per cent. Tariff collection efficiency is close to 100 per cent. Private players, once reluctant to invest in Gujarat's power generation, are now rushing in: of the power plants with a total installed capacity of 16,945 MW coming up in the state, 6,864 MW - or roughly, a third - is by the private sector. Today Gujarat is one of the few power surplus states in India with 24*7 power supply across the state.
Gujarat has also made huge strides in renewable power generation, Gujarat Solar Park is the biggest solar farm in the world, covering 2,000 hectare of northern Gujarat, India, and it has the capacity to generate 850MW of power. An increase to 1,000 MW is expected to be completed by 2013.
In the first-ever exercise to grade all state utilities for their credit-worthiness, all four electricity distribution entities from Gujarat have been rated 'A+'.
While power supply situation remains worrisome in most parts of India, another BJP ruled state of Madhya Pradesh (MP), which used to be tagged as a BIMARU state, now after 10 yrs. of continuous BJP rule, is expecting a 24 hour power supply in 2013-14 to be implemented in all the districts.
If even after around 57 yrs. of Congress rule, they are not able to ensure basic things like uninterrupted power supply, there should be no reason to entrust them with the responsibility of governing the country or state.
If even after around 57 yrs. of Congress rule, they are not able to ensure basic things like uninterrupted power supply, there should be no reason to entrust them with the responsibility of governing the country or state.
