Indian electricity sector needs “current” of reforms.

Rajiv Goyal

Electricity is the major factor, availability of it, at economical prices, would ensure sustainable GDP growth. At village level, availability of electricity for 16 hrs will ensure growth of rural economy by 5% and thus less migration to cities.
Insufficient mining of coal and failure of railways to provide 325 Rakes per day (currently providing 225 rakes per day) has left no coal for short term power generation leading to continuous rise of prices on power exchange.
Sh. Piyush Goyal, without having proper homework, also restricted imported coal process, though its on higher side, but then availability is needed, even at little higher cost. Today, many plants are lying idle due to shortage of coal and consequently some important transmission lines are also not fully utilised.
Government must think em-pathetically to provide compensatory tariff to UMPP. There is no point that to keep sanctity of a contract, assets are kept idle. Discoms are ready to purchase replacement power @75 paisa higher rates but not ready to compensate 30-40 paisa.
Solar market is also reaching stagnation stage after Sep’17. At one hand duty is raised and on other hand tariff expectation is so low, that inspite of bidding of almost 2500 MW, no plant is coming up. Whether Govt is happy to declare only low rates
Hydro is going to be down this year due to short rains/ water in hills.
Power rates in exchange are generally above Rs 3.50/- approx Rs 1.00 higher per unit. There is  pressure from consumers side for lower tariff and 24 hrs supply even in high power theft prone areas.
Probably combining of important ministries by PM is not working well and there must be changes to have separate ministers for Railways, Coal, Power and Ministry of New & Renewable Energy to expedite resolution of issues. Idea was to synchronise for efficiency gains, result is laxity as counter forces are suppressed due to common boss
Instead of bidding for solar and wind power, Govt must open the sector for 50GW plants at pre-determined rates to be awarded on First Come First Serve, to be commissioned within one year time, else penalties.

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