Power Scenario in Northern Region Grim-PHD Chamber

The Power scenario in 11 States in the Northern Region including the Union Territory of Chandigarh and the States of Chattisgarh and Madhya Pradesh shows an overall deficit of about 6.5 per cent and a peak time shortage of 8.3 per cent during April-July 2007, according to an analysis made by the PHD Chamber.

“Against the backdrop of the proposed North–West corridor and the prospect of large scale industrialization in the region, proactive steps have to be taken to step up the availability of power and to match it with the peak level demand,” says Mr Sanjay Bhatia, President PHD Chamber.

On an aggregate scale, eleven States including a Union Territory in the region have a combined requirement of 66,176 MW as against the availability of 61,322 MW leaving a deficit of 4854 MW as of now. “The deficit has been worked out on the power scenario as of now and has not taken into account the huge suppressed demand. That includes the projects that have been shelved or abandoned on account of non-availability of quality and uninterrupted power supply,”. And the actual ground situation is reported to be much worse even for existing units, says Mr Bhatia.

Among the 11 States and the Union Territory surveyed, the deficit is maximum in the case of Jammu & Kashmir, which is pegged at (-) 27.6 per cent, followed by Madhya Pradesh (-) 18.6 per cent, Chattisgarh (-) 18.2 per cent, Punjab (-) 10.3 per cent, Uttar Pradesh (-) 6.3 per cent, Haryana (-) 5.6 per cent and Uttarkhand (-) 4.3 per cent. In the case of Chandigarh, Himachal Pradesh and Rajasthan, there is no deficit based on the assumption that the pent up demand is not taken into consideration.

Significantly, hectic efforts are on to augment power availability in the States during the 11th Plan. It is estimated that in the Northern region alone 22,359 MW of additional capacity is being targeted. Besides this, Chattisgarh and Madhya Pradesh have targeted at an additional installed capacity of 3191.18 MW and 5019.17 MW respectively taking the total installed capacity to 30,569 MW.

PHD Chamber also has taken stock of the pace of power reforms in the States. There has been a significant improvement in the transformer capacity, as also in the installation of electronic meters and use of IT – based systems. Besides, many states have undertaken the unbundling of SEBs. But there are some worrisome factors also. Only Delhi has attempted privatization of distribution and taken the entire power reform process to its logical end. “Delhi experience shows that with management control of distribution companies in the hands of private operators, power sector may become self-sustaining and this may obviate the need for government subsidy year after year,” says Mr Bhatia.