24x7 Power supply a reality: Ajay Shankar at PHD Chamber

“Uninterrupted power supply can be a reality in next two years time if the regulatory system is in place “said Mr. Ajay Shankar, Secretary, Department of Industrial Policy & Promotion at 10th Annual Chief Secretaries Summit” organised by PHD Chamber.

Mr. Ajay Shankar, said that the most important component of industrial development is skill resource and Delhi is a human resourceful city and is an engine of growth for the entire area.   He added “the industrial policy incentives do not attract investment but we have to get the eco system right and should keep the ”.  He further reiterated the fact that 24x7 power supply can be made a reality in two years time if the regulatory system is in place but the industry should be prepared to pay higher. SMEs especially exporters pay a heavy price for not having uninterrupted good power supply.

“Labour reforms at the micro level should be possible and it should be private sector driven.  Incremental reforms and cumulative action will give huge results and if we work together 10 to 12% industrial growth for the next 10 to 12 years will be possible “ added Mr Shankar. 

PPP in electricity in form of management contract, franchisee or independent licensees, which can be adopted depending on level of need and desired output in varied proportion of ownership and control could be a solution to 24X7 power supply to industrial parks. This was one of the important suggestions given by BSES Yamuna Power Ltd As most of the States in Northern & Central India are formulating new industrial policies, the Chamber’s endeavour was to suggest a policy framework that can help in creating an enabling environment to attract investments through upgradation of industrial infrastructure, offer desirable but minimum fiscal incentives & exemptions, introduce reforms in labour laws and simplify rules & regulations.

 Presently, almost all the industrial parks are served electricity by respective licensee/Discoms. Therefore, there is a need to provide an independent service provider within the regulatory framework to serve the industrial park in required manner to provide necessary fillip to the industrial revolution in the country.

Shri Rakesh Mehta, Chief Secretary, Govt. of NCT of Delhi, said that , “ We have to make Delhi an attractive States specially with respect to infrastructure” . He also said ”6000 MW power projects have been commissioned and the target of power loss is going to be 10% in the coming years “ . He wanted Delhi to become a knowledge centre.  He further added in the next 3 years employment generation and industrial development will keep climate change agenda in the consideration.  “We will be shortly introducing property title system which has the largest litigation so far.” He added.

Shri P J Oommen, Chief Secretary, Govt. of Chhattisgarh, said that the Chhattisgarh is growing furiously but is confined to a few sectors only but Chhattisgarh is looking forward to new economic sector like IT, Bio Technology, Pharmaceutical.  He further added that SMEs are most welcome as 25% of land is reserved for them.

Shri S C Agrawal, Chief Secretary, Govt. of Punjab, said that in the next 3-5 years power scene will be very comfortable. The new Industry will get preferential treatment but the industry should take some responsibility of maintenance.

Smt. Asha Swarup, Chief Secretary, Govt. of HP said that next 4-5 years 10,000 MW  power availability will be there.  The Government has acquired huge land bank for perspective units for setting up industrial units in various districts.

Shri Y S Malik , Principal Secretary, Industry & Commerce, Govt of  Haryana said that on a single window clearance system is not feasible but a common application forms is being worked on  The Self discipline and regulation by the industry is very important.  Industry should go for participative management.  On the power shortage front he said that in the every six months for the next one and a half years we will be adding 500 MW

Shri Anil Goswami, Principal Secretary, Industry & Commerce, Govt of J & K the State is planning to acquire 20,000 canal of land for industry and will be providing liberal packages of incentives.  In the case of special training requirement of the industry the state can undertake training for that specific industry needs.  He invited the industry to come and invest in the state.

Ravi Wig, suggested that identify 2 or 3 industrial parks in each state on a pilot basis for being offered to a SPV Discom for a fixed term, industrial consumers from the park can enter into an agreement with the Discom, Industrial clusters be supplied power at 132 KV and thereafter, the SPV Discom shall distribute power to units in the cluster on a 24x7 basis, even if only 70% of the units in a particular area are willing to avail the benefit of dedicated power, then also the Discom can provide power to interested units subject to payment of marginally higher tariff approved by the State Electricity Regulatory Commission, the Discom shall have a provision for self generation of power in emergency situation and furthermore for additional power, SPV Discom shall enjoy the discretion to purchase power from power exchanges, Discom shall require a separate dedicated transmission and distribution feeder. Its cost can be recovered by adding the same to the tariff and the states should consider introducing Smart Grids as these are capable of focusing on specified area. Smart grids make it possible for energy suppliers to charge variable tariff so that charges reflect the considerable differences in cost of generating electricity during peak and off peak periods.

Mr. Satish Bagrodia, President ,PHD Chamber said, “  the agenda of the summit was to deliberate on an appropriate policy of industrial development for the states and facilitating 24X7 power supply to industrial clusters. “

“Attract investment by offering superior infrastructure and good governance – discretion free and transparent and offer minimum of Fiscal Incentives & exemptions to attract investment in states “ said Mr. Ashok Kajaria, Senior Vice President, PHD Chamber. “Capital goes where capital is welcome” is the thumb rule of investment added Mr . Kajaria, Senior Vice President, PHD Chamber. 

Other important suggestions which were broadly agreed were that minimum of fiscal incentives be given by states and the VAT deferment scheme be considered, the state incentives & exemptions be supplemented by GOI schemes for infrastructure.

Development, provision of funds may be made in the State annual budget for development / maintenance of industrial estates/parks, enact a common Industry Facilitation Act for one stop clearances and also for maintenance of industrial areas. A Special Purpose Vehicle (SPV) can be floated for upkeep of industrial parks \      clusters and amendments in various sections of Industrial Dispute Act be considered after deliberation. Simple labour legislation, easy for implementation be ensured.

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