Power woes worsen but govt not deterred by 24x7 supply aim

Moneycontrol BureauEven as several parts of the country are facing an acute power crisis in the wake of a severe coal shortage, the Bhartiya Janata Party government is confident it will achieve its dream of providing 24-hour power supply to the nation in five years.Towards that end, power and coal minister Piyush Goyal yesterday announced that the states of Delhi, Rajasthan and Andhra Pradesh would get 24-hour power supply soon.He, however, did not elaborate upon a timeline for achieving continuous power supply nor did he outline how the central government plans to achieve this.The Narendra Modi government, which swept to power in May on a historic wave of support, has vowed to end the country’s endemic power woes. In a recent interview, Goyal said he was confident he would be able to achieve round-the-clock power supply before his government's term ends.

The power minister cited the example of the Gujarat government formerly led by Modi, which succeeded in achieving round-the-clock power supply.The Gujarat government under Modi was hailed after it successfully turned around the dismal financial performances of its power distribution companies (or discoms) and ensuring seamless power supply. This it did by separating power supply feeders for subsidized agriculture and residential units from commercial supply as well as raising power tariffs and cracking down heavily on power theft.Goyal has said the central government would look to implement the Gujarat power model across the country though he has complained about the lack of cooperation from states ruled by opposition parties with whom he has tried to bring up issues of coal supply and tariff resolution.Towards that end, the finance minister, Arun Jaitley, set aside Rs 500 crore for separating electricity feeders throughout the country during the federal budget in July, even though critics dismissed the sum as too small and said at least Rs 1 lakh crore would be needed to complete the project.Several Indian discoms are reeling under a debt burden arising out of years of losses as state electricity regulators do not allow them to raise power prices enough to cover costs and a resolution to this issue for any progress to be made on expanding power supply.The central government, soon after assuming power, has also faced a major roadblock in the form of a decision of the Supreme Court, which recently termed all coal block allocations made between 1993 and 2012 as illegal.But in an interview to PTI, Goyal said his government was ready to prepare for any eventuality – even cancellation of mining licences as the court has mulled over – and is waiting for the verdict that is set to be delivered on September 9.“We only want finality,” he said.The government is also considering restructuring Coal India, the world’s largest coal producer, which has been criticized for consistently missing its production targets and failing to keep up with the burgeoning demand for coal from Indian thermal power plants.Thermal plants provide power to about two-third of the country.Goyal has also been look to streamline the way coal is transported across the country and on Wednesday, his ministry approved a so-called coal swap for Gujarat power plants who will now be allowed to use coal imported at its Mundra port by NTPC. In return, NTPC will get to use coal for its Chattisgarh-based plants from nearby mines in the coal-rich state.