Where do we go in search of power
when actually it is coming towards us? The nature of such a mysterious
existence remains still unknown for the so-called 'human-brains'. The different
facets of the human civilization have shown that cruelty has always
overshadowed the good. In this case, the wither of the golden spring is yet to
begin and thus the beginning of such a prosperous time lies in the reforms.
When the news of the 'Rationalization of tariffs' in power sector was
announced, the one thing that stuck everyone was whether India could be able to
pull-off more power with the existing resources. The answer is definitely a
sound 'yes’. The power sector reforms as stated by the government in order to
regulate the activities of State Electricity Boards (SEBs) and their
distribution channels have received overwhelmingly a positive response. There
is so much fuss about the structuring of the state capital and shareholding
that the regulation of tariffs hardly been noticed. The emancipation of
derailment of faults in the power sector administration could well solve this
issue of irregularities and introduce a system that is the output of a power
sector reform. At present, the SEBs sometimes buys power at Rs.7 to Rs.8 per
unit, and sells it to consumers at anything from Rs.3 to Rs.5 per unit,
incurring additional losses. Meanwhile for selling the power from an
independent producer to the common man, facing huge losses, logically the
government couldn't satisfy its purpose of being stable in regulation power.
Eventually huge money is again procured from the Central Power Regulation
Agency for compensating the losses faced. In such a scenario, introducing the
'rationalization of tariffs' seems to be a must and 'the need of the hour'
phenomenon. Unbelievably and astoundingly large, the estimated total losses run
up by the SEBs has been pegged at Rs.1.9 lakh crore which is far more larger
than the revenue generated by the largest independent power producer. The
package the CCEA has now worked out having made the inroads to get back an
additional sum for compensations. The dependent States have the time till
December 31, 2012 to opt into CCEA for power regulation by a central body with
virtual authority by the State itself. The money comes with reform strings
attached and this is where the ruling parties of the respective State
governments have to bite the bait and obviously go by the reforms. The State
governments must commit to revising their power tariff annually through the
mentioned regulatory boards to pursue their power regulation through this
package. Moreover, the tariff order for 2012-13 will have to be notified before
the restructuring package gets approved for the reforms to be completely done. Unfortunately,
the SEBs are the reason for transmission and distribution losses, which account
for as much as 40 per cent of output in some States and thus cutting the losses
will enhance more power and less losses. To get straight, while states like
Gujarat, Jharkhand and Chhattisgarh are able to regulate power through
independent power producers why cannot the most of the other States with available
resources resort to tide over crisis-like situations like now? The evident
answer is to be analyzed and approved. Rain flows cautiously even. Our minds
think like the same. If it is for the good, then the results are better. Wish
such minds think about power reforms and the situation just gets better!
