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Topic : Project Refromation
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Energy Professionals

Industry : Power Functional Area : Growth
Activity:  17 comments  1990 views  last activity : 01 23 2012 14:52:29 +0000
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IN RECENT times, Maharashtra has been experiencing a severe power crisis. For many decades, it had a reputation for reliable supply and recorded good progress both in industry and agriculture. But because of little or no addition to generation capacity for almost a decade, many parts of Maharashtra are now subject to power cuts for six-ten hours a day.

During the 1990s, there was a flurry of seminars and symposia by the Independent Power Producers Association (IPPA) to educate government functionaries about how the structure of the power supply industry should be changed to make it IPP-friendly. Notwithstanding the time and energy invested by civil servants and politicians, the growth in private sector generation over the past decade-and-a-half has been very modest and indeed dismal. The star of the private sector, Enron project, which has occupied media space extensively over the past decade, has been a real disaster for the country. Many power professionals warned the country of the glaring infirmities in the project. Yet politicians and civil servants with little or no professional expertise sold the project to the country. Hopefully the asset already created will be put to use, but the Indian financial institutions, publicly held, and hence the public will have to take a big beating in the process. India's power sector today ails not just from inadequate addition to generation capacity.  An equally disturbing development is the ad hoc manner in which the Union power ministry has been planning to tackle this problem. Against a scaled down target of adding 34,000 MW of power generation capacity during the Tenth Plan (that will come to an end in less than nine months from now), the actual net addition to the existing capacity will be around 15,000 MW.

So, what is the power ministry doing about this? Well, you could look forward to a few innovative attempts within the ministry to dress up the numbers to present a better picture than what the woefully low addition of new capacity in the last five years would otherwise suggest. The idea doing the rounds is to add all the new power generation capacity created in the renewable energy sector to the capacity created through conventional sources of power generation like thermal, hydel and nuclear. So far, the government's Plan programme has no provision for targeting capacity addition in the renewable energy sector. Thus, the targets are to be achieved from thermal, hydroelectrical and nuclear power sectors. So, if the contribution of the renewable energy sector is included in the overall performance in the Tenth Plan, the final figure would look a little less embarrassing. But the hard reality and its consequences for economic growth cannot be escaped.

Not that the power ministry did not plan anything at all to make good the shortfall that it feared from the third year of the current Plan period. It focussed on setting up mega thermal power projects. With a fully functional national grid yet to be commissioned and no viable payment mechanism in place, potential investors in the ultra mega power projects are now a little wary.

True, several foreign investors, including those from the US and China, have shown interest in setting up these projects either on their own or in partnership with Indian companies. But unless the question of guaranteed offtake and a credible payment mechanism is settled, the target for adding fresh capacity in the Eleventh Plan through these ultra mega power projects may also turn elusive.

The elasticity of power consumption with respect to GDP is 1.2; rapid growth necessitates greater power consumption. To maintain political largesse in power distribution, India is foregoing $12.5 billion in economic output annually.

Isn't this loss painful enough to build a national consensus on this issue? If not, the power problem will get worse before we are forced to turn to the straightforward solution, the only solution to rid us of our energy impasse -- the elimination of power theft and dacoity!


 Top Comment : Ganagaraj Ramachandran   | 08 27 2008 01:18:17 +0000
This problem is not unique to Maharastra alone. It is same in almost all Indian States. The common people, Industry and in total the country economy are suffering because of power shortage. The solution is not one dimensional i.e. not addition of new generation capacity alone, to me the most important is free the electricity board from all burden and free them make them responsible and answerable. But is it only dream!!!
 
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17 comments on "Any solution for India's power crisis?"
  Commented by  Ravindra Sharma, Managing Consultant, CHEF-India    | 01 23 2012 14:52:29 +0000
Much before we talk on alternatives let us ask one simple question?   
Who has the will to do it??
Surely once this first question is affirmative there are several ways and means we in India can course correct from solar power to small hydel-units. 
  Commented by  ricky P, SMM exeutive,    | 01 11 2012 13:00:01 +0000
educating the people to save the power, and Public private partnership also required ....
  Commented by  Apeksha, IT/Technical Editor,    | 12 05 2011 08:08:00 +0000
Both the central and state government should stop encouraging and granting licenses to build malls. Why make every other building and locality a commercial place? where will common people stay and how will they survive. create more greener space, and harness solar energy
  Commented by  Sunil Kumar Gupta, Internet Marketing Executive, Wildnet Technologies Pvt. Ltd.    | 11 20 2011 05:51:12 +0000
privatization is the only solution to reduce India's power crisis.
  Commented by  Srikanth Grandhi, QA&QC-Executive, ZF Steering Gear India Ltd.    | 11 19 2011 06:59:28 +0000
why companies cant develop power by using solar power. By arrangeing  solarsheets in roof. this may not give sufficient but give some quantity which is sufficient for lights & fans.
  Commented by  Alam Saquib, B.A student, Shanti Niketan Awasiya Bal Vidyalaya    | 11 19 2011 05:14:34 +0000
the power crisis may be tackled by reducing wastage of power and by developing renewable sources of energy.
Rating : +4 
Certainly, Solutions are available but stingy actions in implementing are required:

1.	All classes of public has to be educated / motivated well with the ideas of power generation, consumption, various tariff implementation and acceptance to be done.
2.	Subsidized power supply to be demolished.
3.	All over head Distribution lines to be changed to under ground cable services to avoid power theft by looping method.
4.	All the Electromechanical energy meters to be replaced with digital energy meters.
5.	Prepaid energy metering to be done to avoid loss in collection of revenue after usage of electricity. In India still a very huge revenue is pending against bill payments from politicians, which could be recovered by implementing prepaid system and this should be approved to them only when the pending bill are realized that too by giving a very short stipulated time period for their bill payments without having second chance.
6.	There are lots of flaws in distribution of power at consumer sides due to higher officials & contractors but not designing proper loads for the DT’s. This has to be taken care at war foot step.
7.	The DT’s should be installed at the required regions with a higher ratings than the actual required load at that point of time so that if some 10 – 20% extra load could be added in a span of 2-5 years.
8.	All the installations whether it is at Generation, Transmission or at Distribution should be evaluated with Star Ratings and should be with Warranty at least for 5 – 7 years.
9.	At regular interval of time the Transformers should be maintained (by oil filtrations, changing breathers, changing gaskets & lightening arrestors), the under ground cables to be checked for insulation etc.
10.	After all but without fail- removing corruption from the society as well as from department of electricity, this is mandatory.

By this we could sure the society – out of power crisis….
  Commented by  Vineet Prakash, Sales/BD Manager, Tata Power    | 03 24 2009 08:27:55 +0000
Rating : +1 
I strongly agree with Nataranjan that wind energy is the most useful untapped source of energy.At a wind speed of three miles an hour, the turbine makes 60 rotations per minute, which is enough to generate around 850 watts. Greater the wind speed more is the power produced.The wind speed can generate power to support all household electrical equipment, including a two-tonne air conditioner, compressor for drawing water and grinder. “Roughly, a household requires about 1,000 watts a day, which the windmill can easily provide. The excess power the windmill generates is sent to a battery with an eight-hour backup,” So its evident that wind energy can be a solution for India's power crisis. 
  Commented by  arun kumar, Corporate Planning/Strategy Manager, Reliance Energy    | 09 27 2008 09:50:58 +0000
Rating : +2 
The main objective is to add more and more power generation plant, reduce the Loss & reduce the subsidy. As far as generation is concern; over the past few months, concerns pertaining to fuel availability, water scarcity, and equipment supply have increased. While the government has initiated steps to address these problems, simultaneously it is also working on plans to offset any slippages through the following measures: 

1.	Projects that are in early stages of construction in the private sector and also which are being built for captive generation but having surplus capacity can be linked to the grid.
2.	Expediting some portion of the Twelfth Plan projects to enable them to be commissioned in the current plan. 
3.	Improved domestic natural gas availability so that several gas projects (which are not operational due to lack of fuel) can be commissioned.
  Commented by  Prabhu Dakshinamoorthy, Corperate Affairs Exequtive MAYTAS PROPERTIES    | 09 16 2008 02:43:08 +0000
Rating : +1 
we can overcome this issue by establishing more wind power enery, and we can produce power from the sewages, and we should insist on power consuption in domestic as well as in industrial parts . we have to produce more hydro power plant in south side because of there is a source of water in the south side to produce it. And last but most important thing is in the farmers side,we can take into account of farmers having more land and we can leave rest of farmer having small properties. we can collect some minimum amount as a tariff for consuption instead of full free of cost for the farmers. with that amount i think we can produce more power.
  Commented by  T.Prasad Rao, Corporate Planning/Strategy Manager retired    | 09 07 2008 06:19:43 +0000
Rating : +2 
Now that Nuclear Suppliers' Group has lifted its 16 years old embargo on India at Vienna, the "installed capacity problem" (I do-not mean the power crisis problem) should dilute and gradually dissolve, if we go by central government assurances, as if this is the only solution to the power problem of India. It is all together different as to what extent it helps recovering revenues. As  a matter of fact, the central governement has not considered it a revenue problem at all. I will be happy to be enlightened as to why the "Thorium-Processing Technology" could not be implemented in last 60 years of independence, when we have largest of Thorium deposits of the world. Is this a bogus strategy, an impossible technological appraoch or a political compulsion to remain dependent on Uranium alone ?
  Commented by  paresh, Head/VP/GM-Marketing gsecl    | 09 01 2008 09:43:09 +0000
Rating : +1 
no free elect. to any body .agri or to legistation all should pay.
only reimbursement in IT act for payment done can claimed.therby cash flow wiill increase and all sshould note price for what they  r using.
  Commented by  T.Prasad Rao, Corporate Planning/Strategy Manager retired    | 09 01 2008 08:03:19 +0000
Rating : +2 
Partial insight into the depth of problem ! First of all it is a common problem at all India level, more pronounced in Northern states. It is true that superficially, it is a law and order problem. But how does a law and order issue appears in recovery of the costs of the services rendered ! Why this does not appear in private sector or when recovered by a grocery-shop owner in the same legal structure ? First of all, it is a public-sector product where every-one has right to teach others as to how to recover the costs. Secondly it is lebelled with the term "service to the society or to the have-nots" by the states. It is all together different whether the have-nots are really benefitted by this adjective of this sector. To the best of my knowledge no have-not is really benefitted by this adjective of the power-sector. Who opposes the recovery ? Those backed by politicians. It is very easy to make the recovery disputed in a court of law and delay the payments indefinitely. Remember, the theft is done by socially powerful lot only. In this matter our judicial system is guided by the proverb "let not an innocent be punished even if infinite criminals escape the punishment". And yes, the infinite criminals are enjoying this trend while the system is bussy searching the innocent to be protected. In this vicious circle of blaming one another for non/less recovery, every one is washing hands, obviously the employees also and they are highlightes as rael responsibles. There is law in the "Electricity-Act" compelling the govt. to make budgetary provision before granting benefits to the poor, but how many really follow this law ? Is this not a fact that laws are made to increase liabilities of the "S.E.Bs" towards the state and adjust such budgetary provisions, in stead of actually paying to the "S.E.Bs" for the so-called the social services rendered to the poor by the states ?
  Commented by  RAJIV GUPTA, EXECUTIVE ENGG POWER TRANSMISSION CORP OF UTTARAKHAND    | 08 29 2008 06:27:49 +0000
Rating : +1 
Hi power enggs, the problem of SEBS" lies in poor revenue realisation in L&F dense populated areas particularly in north states as metered supply & upkeep in meter reading is not possible due law and order problem.The solution lies in flat tariff as per establishment and installation size,leving electricty tax on all equipments running by power on its production cost as per wattage,then ploughing back this money for generation capacity increasing:RAJIV GUPTA
Rating : +2 
Hi Inajeet, I strongly belive that Only natural sources like Wind, Solar and Biomass are the solutions for Power Crisis in our Counrty. Since am an Wind Engineer, I could tell you that we have enormous wind potential which are yet to be trapped in India.If Government changes some of its very old policies favouring our sector, in coming years, We would definitely reduce this crisis. 

China understood the important of Wind and its Goverment is supporting Wind Sector alot. So in last finanical year alone (2007-2008) China added 3287MW through Wind Energy.

Globally for the past 5 years this Wind Energy Sector has achieved a growth of 22.3%. 

In 2007 the installed capacity is more than 19,000MW.

With this examples, you can understand the need of Wind energy and its Growth which remains much needed and unbeatable.

Rating : +2 
This problem is not unique to Maharastra alone. It is same in almost all Indian States. The common people, Industry and in total the country economy are suffering because of power shortage. The solution is not one dimensional i.e. not addition of new generation capacity alone, to me the most important is free the electricity board from all burden and free them make them responsible and answerable. But is it only dream!!!
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