Second generation reforms are necessary to set right the country's power sector while addressing fuel supply issues, according to former Union Power Minister Suresh Prabhu.
Interacting with representatives from the power sector here on Saturday, he said, “It is possible to fix most of the problems in a timebound programme if we are keen to resolve them.”
The Electricity Act addresses most of the concerns but it is not being effectively implemented.
He said that unless we solve fuel related concerns, the country will face much bigger challenges in future as the import bill will further increase and add to the country’s deficit.
The workshop on Power Crisis—The Way Ahead was organised by the Federation of Andhra Pradesh Chamber of Commerce and Industries and the Mumbai-based Urja Gyan Foundation where several experts from the power sector and energy exchanges took part.
The country’s manufacturing sector is passing through its worst phase and its contribution to the GDP is just about 20 per cent compared to 40 per cent in China.
He said that the Government should fully subsidise the free power bill if it wants to provide free power to the farm sector. Since this is not being done, discoms are in financial crisis, Prabhu said.
Prioritising efforts to address sector concerns, he said, “We will have to address the fuel issue, both gas and coal to improve fuel supplies and help stranded plants.”
T.L.Shankar, an expert in the power sector, said, “The losses of Discoms have gone up to over Rs 2,00,000 crore from Rs 41,000 crore in early 2000. If we had addressed this effectively, we would not have faced the current situation.”
M. Gopalakrishna, former special Chief Secretary of Andhra Pradesh, said that the best way to resolve issues is to prioritise them and seek to address them in a time bound programme.
D.Radhakrishna, Chairman of Urja Gyan Foundation, said that better grid discipline and running it at about 48 mega hertz instead of about 50 mhz will help free up more capacity.
Srinivasa Ayyadevara, Senior Vice President of Fapcci, said that the industry in the State is passing through its worst phase due to nearly 50 per cent power cut. Unless power supply improves the industry is in for more trouble.