Thursday 16 August 2012

Forget FDI, Focus on Power Sector



Rahul Agarwal
Again with a pathetic feeling I am writing on the burning issue of Indian economy. With the power collapse in two consecutive days due to failure of power grid, you can easily recognize what is the condition of power sector of India. India which is one of the most emerging economies of the Asia is still lacking in the power sector. Still majority of the population in the India give votes during election to the candidate with only one hope or you can say demand i.e. “Availability of Electricity”. In rural India still villages get electricity for only 2-3 hours in a day which is not adequate according to current demands of the nation. Whenever a farmer gives their vote, he still seeks electricity from the government. Farmers have the tendency that who so ever give them adequate electricity, they will their votes to that party only. Like always many political parties formed and many diluted and many gave commitments about electricity, but still people are living in dark in many parts of the rural India.

Basic Need:  
Whenever you think about basic need then images of FOOD, SHELTEER, CLOTHES appear in your mind but now days it has changed to electricity. Without electricity you cannot imagine your life. It’s a very basic need. But India the emerging superpower nation is tackling with its basic need i.e. “electricity”.  How can you think that India will be the next superpower? If still Ministers claim this then it would be a hilarious joke.

Main Problem
:
In India around 8% electricity generated from nuclear power plants and majority is generated from thermal plants which contributed 57% of the total power generation. In thermal power plants COAL is the fuel which required for generating electricity. The main problem lies in the availability of coal. COAL INDIA Ltd the state owned monopoly which supply coal to the various power plants is not digging well, due to this several power plants are running out of coal despite we have mountains of coal reserves in our country.
According to the data given by Coal Ministry, Coal India has been asked to sign fuel supply agreements (Committing to supply 80% fuel) to various power plants, but unfortunately Coal India is supplying only 65% of the fuel to the power plants and rest 15% of coal is imported which at today’s rates costs twice that of domestic supply and which is deliver it to power producers. Now government is using a tool which is “Price Pooling” to distribute the heavy prices of imported coal between various power producers.
According to CIL, it has estimated that it will import around 20 million tonnes of coal this fiscal despite having huge reserves of coal which is not using and which can boost up our economy. But as usual no one have the courage to dig up that precious coal. To import coal we are paying almost twice of the domestic supply of coal in spite of being we are tackling with the inflation malaise.
Jharia town which is Dhanbad District of Jharkhand State has huge coal reserve which is worth of several crores are still unmined and it has been burning from past many years and we still depend on the imported coal which leads to increase in the price of electricity around 6 to 8 paise per unit.
Recent power collapse created havoc in the mind of the people and after that government increased price of electricity around 18% which will be paid by the public only. I mean in every case all burden is transferred only to the public only. They have to bear all the extra expenses which were due to the poor management of the government.
If we can dig out our coal reserves very well then it will not only reduce the price of elasticity but it will also help to put our nation on the right track which was tackling with the problem of food price, oil price, inflation, fiscal deficit etc.

Forget FDI:  
Today the most burning issue is FDI in single brand. Well, I would say forget the FDI, just concentrate more on power sector which was grabbing headlines not only in India but across the globe about the inefficiency of power sector. We need major reforms which can change the India’s power sector drastically. Of Course, we are the main culprits behind this malaise, as we never care about electricity whether it is being used optimally or not, we don’t care.
So switch off all electric appliances if not in use. I would say many thanks to the government which understand this pity problem and started many ideas like if you will consume less than 200 units in a month then you will get subsidy of Rs 200 in your monthly bill. So this small-small gestures and initiatives will lead to optimum utilization of electricity.


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