What is the reason for the power crisis in the country?
This crisis of the power sector is the result of a systematic attempt by successive Governments to starve the sector of public funds hoping to make high-cost private power more acceptable to the people. Instead of investing in the power sector, the Government has gone in for privatisation of the power sector with higher prices of electricity. In the 7th Five Year Plan, we had put in about 21,000 MW; in each of the 8th, 9th and the 10th Plans, we have added less than what we added in the 7th Plan. The net result has been the increasing bankruptcy of State Electricity Boards and converting what was a shortage of the early 90’s to a full-blown crisis today. If we now have enough money for the power sector, we need then to think on the quickest and cheapest way to remove the current electricity shortages while keeping all our options open.
This crisis of the power sector is the result of a systematic attempt by successive Governments to starve the sector of public funds hoping to make high-cost private power more acceptable to the people. Instead of investing in the power sector, the Government has gone in for privatisation of the power sector with higher prices of electricity. In the 7th Five Year Plan, we had put in about 21,000 MW; in each of the 8th, 9th and the 10th Plans, we have added less than what we added in the 7th Plan. The net result has been the increasing bankruptcy of State Electricity Boards and converting what was a shortage of the early 90’s to a full-blown crisis today. If we now have enough money for the power sector, we need then to think on the quickest and cheapest way to remove the current electricity shortages while keeping all our options open.
