NEW DELHI: The national Capital has internalised the idea of a power cut. On a mid-summer night, the rattle of generators and invertors is almost a natural sound. There is a certain finality, a general helpnessess that has penetrated far and wide in the Capital. Powerless in power, residents are forced to believe there is no way to wriggle out of the ‘too much demand, too little supply’ situation.
And, that makes Piyush Goyal an unordinary man. The 50-year-old investment banker-turned-power minister says he will rid Delhi of power cuts within two years and will ensure an uninterrupted supply of power to the country within the next five years.
The power sector is besieged with problems including inadequate coal supply to fuel the 91 mega thermal power plants, lack of forest and environmental clearances for over 70 power plants, which are in different stages of completion, to contain over 23 per cent transmission and distribution losses, restructuring state electricity boards or power distribution companies, as per the latest World Bank report.
“Total accumulated losses in the sector (state electricity boards) stood at $25 billion in 2011. These losses are concentrated among distribution companies and bundled utilities - state electricity boards (SEBs) and state power departments,” the report noted.
Out of a total installed capacity of 2,48,509.63 MW as on May 2014, India’s thermal power accounts for a little over 68.19 per cent and stands at 1,71,376.09 MW. Coal accounts for 1,47,568.39 MW, gas-based plants 22,607.95 and diesel gensets 1,199.75. But in terms of generation, thermal accounts for more than 82 per cent of the total output, as per the April 2014 CEA data.
Of the total generation of 87,152.23 GWH (Gigawatt hour) in April, thermal power accounted for 74,485.66 GWH while hydro sector was a distant second with 9,782.80 GWH and Nuclear 2,820.89 GWH. Goyal is confident that his government will remain focussed on the expansion of India’s power generation and will make adequate coal available for power plants to run at optimum plant load factors. As per Coal Ministry statistics, last year, India’s coal demand stood at 769 million tons against domestic production of 546 million tons for which led India to import coal at a premium.
Goyal said his ministry will make every effort to produce more domestic coal, reduce wastage and reduce India’s dependence on imported coal. Keeping in view the financing requirements of the power sector, Goyal plans to set up an energy fund. In fact, a group of bankers and sector experts are already researching the best possible ways to finance the ailing sector. Goyal confirms his first priority will be to provide affordable, reliable and quality power to the consumers as the sector that he has inherited was fraught with bad planning, and lacked adequate fuel linkages to run the power plants.