Power sector in ICU?

The power sector in India is truly running on a stand-by – its there now and it could not be there later. So the Modi Govt patted itself on the back, claiming its powerful performance in the Indian power sector – it said it clocked the highest annual capacity addition ever and best power generation growth in 20 years. But what it did not mention was that FY15 had the lowest plant load factor (PLF) in over 15 years. It also did not tell us that the power plants were operating at an average capacity of mere 65%. What is the kind of growth we are looking at and what is the kind of power we are generating?

That is not all – not a single new power plant has been announced in the past two years. So lower PLF and no new power plants – how will we ever meet our growth targets? When supply outstrips demand, naturally all will come to a standstill, there will be a gridlock.

Currently we are in a situation where demand is there but thanks to the financial ill health of the state power distribution companies (discoms), no one has the money to pay for the power. Unless discoms are made viable and tariff reforms are pushed ahead, the Govt’s 24x7 power promise would be all but switched off.