Our policy makers can’t even manage thermal power. How will they manage nuke power?
There are even more scandalous facts. Of all the major nations of the world, India boasts of the worst Transmission & Distribution (T&D) systems. Even in the capital city of Delhi, T&D losses are in excess of 40%. If you give up the jargon, T&D losses simply mean outright theft of power. When power supply was privatised in Delhi in 2002, theft and loot accounted for almost 50% of the total supply. Six years after ‘efficient’ operations by private players and umpteen hikes in rates, theft and loot in Delhi is still more than the national average of about 30%. In effect, honest households are paying higher tariffs to subsidise thieves and inefficient private players, who cannot or will not stop the loot. The total installed power capacity in India is more than 1,40,000 MW at the moment. If T&D losses are brought down to global levels of about 10%, there will be 28,000 MW more of electricity available to honest users. Ask our ‘power’ hungry politicians why they don’t allow this to happen by shielding thieves.
In 2003, the Parliament passed an Electricity Act that required all state governments to reform their bankrupt and moribund electricity boards. The Act also required that consumers must pay for electricity consumed. Five years down the road, the boards remain unreformed and bankrupt and politicians keep announcing new schemes to give ‘free’ power. That’s a joke because bankrupt boards have no power to supply.
Then again, regulation is routinely caught up in corporate feuds. The huge reserves of gas found in the Krishna Godavarai basin will be a crucial raw material for new power plants being planned. Anil Ambani wants to use gas to produce 15,000 MW of power as soon as he gets his hands on gas supplies. But elder brother Mukesh Ambani is not happy and the Ministry of Petroleum has jumped into the fray, prohibiting Mukesh from supplying cheap gas to Anil. The matter is in Supreme Court and all gas-based power projects have been stalled.
There are even more scandalous facts. Of all the major nations of the world, India boasts of the worst Transmission & Distribution (T&D) systems. Even in the capital city of Delhi, T&D losses are in excess of 40%. If you give up the jargon, T&D losses simply mean outright theft of power. When power supply was privatised in Delhi in 2002, theft and loot accounted for almost 50% of the total supply. Six years after ‘efficient’ operations by private players and umpteen hikes in rates, theft and loot in Delhi is still more than the national average of about 30%. In effect, honest households are paying higher tariffs to subsidise thieves and inefficient private players, who cannot or will not stop the loot. The total installed power capacity in India is more than 1,40,000 MW at the moment. If T&D losses are brought down to global levels of about 10%, there will be 28,000 MW more of electricity available to honest users. Ask our ‘power’ hungry politicians why they don’t allow this to happen by shielding thieves.
In 2003, the Parliament passed an Electricity Act that required all state governments to reform their bankrupt and moribund electricity boards. The Act also required that consumers must pay for electricity consumed. Five years down the road, the boards remain unreformed and bankrupt and politicians keep announcing new schemes to give ‘free’ power. That’s a joke because bankrupt boards have no power to supply.
Then again, regulation is routinely caught up in corporate feuds. The huge reserves of gas found in the Krishna Godavarai basin will be a crucial raw material for new power plants being planned. Anil Ambani wants to use gas to produce 15,000 MW of power as soon as he gets his hands on gas supplies. But elder brother Mukesh Ambani is not happy and the Ministry of Petroleum has jumped into the fray, prohibiting Mukesh from supplying cheap gas to Anil. The matter is in Supreme Court and all gas-based power projects have been stalled.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
