JOIN USElectricity: Crisis without end
Last fortnight many states across the country plunged into darkness for days on end, forcing angry citizens to pile on to the streets in revolt.
The sudden power outage also triggered a blame game between the states and the Centre.
While state governments accused the UPA Government at the Centre of not allocating adequate power from the central grid, the Centre turned the tables on the states blaming them for not increasing installed generation capacity through more power plants. Amidst this mud-slinging, hapless consumers suffered no end without power.
While our leaders gloat over nine per cent growth rate of the economy, it is high time to ponder the bleak power situation in the country. The latest power outage was mainly due to paucity of coal, crippling thermal power stations across India from Delhi, West Bengal, Andhra Pradesh, Karnataka to Maharashtra and many other regions.
The coal shortage was mainly triggered by water logging of coal fields due to heavy monsoon rain and subsequent strike by employees of Coal India Limited (CIL) over payment of bonus. The stir by employees of Singareni Collieries in Andhra Pradesh and subsequent rail roko demanding statehood for Telangana also hit the supply of fossil fuel badly.
With many generators shut, including high capacity NTPC plants, the countrywide power shortage more than doubled to about 36,000 MW on October 12 from roughly 16,000 MW on September 2. Generation at NTPC’s power stations alone was cut by nearly 10%, or 4,300 MW.
This apart, the country’s power scenario is grim as capacity addition remains a major problem. Whether it is coal fired thermal power stations, hydro, solar or nuclear- all the sectors are facing multiple problems.
Coal supply monopoly
Coal supply to thermal power plants, which accounts for over 54 per cent of our total electricity, is the monopoly of government-run company CIL. The company which controls all domestic coal fields, virtually failed to augment production by either not opening new mines or failing to modernise technology.
Against a projected requirement of 742 million tonne of thermal coal by the end of the 12th five year plan (2012-17), only 527 million tonne is likely to be available. This translates into a shortfall of 215 million tonne or 29 per cent of the country’s total requirement projection for 2017.
Moreover, no go area restriction imposed on many coal mining areas by Environment Ministry forced the halting of mining in over 203 coal mines which has capacity to produce 600 million tonne of black diamond. The Coal Ministry cautioned that this ban could affect power generation to the tune of 1,30,000 MW. Admitting that land and environmental clearances were the main hurdles to coal production, Coal Minister Sriprakash Jaiswal says steps are being taken to clear this hurdle.
The other sources of power like nuclear and hydro too are encountering problems mainly due to land acquisition and related issues. After signing the Indo-US civil nuclear deal, hopes rose about enhancing nuclear power’s share from 2.62 per cent to 9 per cent; it also fuels self-doubt following the recent public outcry against setting up new plants at Jaitapur in Maharashtra and Kudankulam in Tamil Nadu.
Equipment availability is another big problem as many companies are forced to depend on imports which lead to undue delay. Thanks to the landmark Electricity Act, 2003, there is a sharp increase in private investment in the sector. Its contribution to incremental capacity addition during the 11th Plan has been approximately 40 per cent and is expected to increase even further to 50 per cent during the 12th Plan period.
The Central Electricity Authority (CEA), the key advisor to the Union power minister, has set a target of 1,00,000 MW of additional power generation during the 12th Five Year Plan period from 2012-17.
Who takes the blame?
Indeed, both the state and central governments are to blame for the power crisis. The peak power deficit - the gap between demand and supply in summer 2010 - according to the government’s own calculations was 10.8 per cent. The responsibility for distributing available power inefficiently falls on the states. Losses in distribution average over 30%.
At the Centre, the power, environment, coal and heavy industries ministries have in various ways acted as obstacles to capacity addition. The states have to strengthen the State Electricity Boards by infusing finance and reducing subsidies.
Though the UPA Government announced eight Ultra Mega Power Projects, each of 4,000 MW capacity, many are still stuck at various stages. Though six projects have been awarded, the Comptroller and Auditor General (CAG) smelt a scam in the awarding of tenders for two UMPPs.
Union Power Minister Sushilkumar Shinde, who is at the receiving end for failure to meet the target, says the Centre has an ambitious mission of ‘power for all by 2012’, for which it aims at an installed generation capacity of at least 2,00,000 MW by 2012, from the present 1,82,344 MW. But an analysis of the current scenario raises doubts about meeting the goal of power for all.