Govt flayed for hiking prices before addressing power crisis
The CPI(M)’s decision to increase electricity prices
in West Bengal has sparked a firestorm of criticism. The Left Front’s ruling partners are upset because they were not consulted in the matter. They say that at a time when the government is unable to provide uninterrupted power in cities and villages it is criminal to hike prices. Most upsetting of all is the fact that the power crisis was not even discussed in the last Budget session.
Power outages during peak production hours have forced farmers and industrialists to bank on generators in a big way. And it doesn’t look like things are going to look up anytime soon. This is because the two mega projects of Infosys and Wipro are delayed.
Above all, the state-run Power Development Corporation Limited (PDCL) has to close its old units. Plus two of WB’s 4 x 210 Mega Watt generating units of Santhaldih Thermal Power Station have been phased out. Two more units are also on the verge of closure. One of six 210 MW units in Kolaghat Thermal Power Station is already closed. The remaining five units are generating about 700 MW, far below the minimum expectation of 900 MW. All the four 75 MW units of Bandel Thermal Power Station generating power for the last 45 years are in bad shape. They can hardly generate 60 MW. The only 210 MW or commonly 5th unit of Bandel is working efficiently.
While the PDCL is facing aging problem, huge dues with the Eastern Coalfields Ltd – a subsidiary of the Coal India Limited – is crippling its function. Now, the ECL has stopped coal supply and is asking the PDCL to clear its dues.
The power firm is having a difficult time following 50 per cent less rain at the catchments of dams – affecting normal functioning of the thermal power stations. Besides, the privatised firm CESC generates power with a shortfall of 250 to 300 MW and borrows it from WBPDCL. Chairman of the West Bengal State Electricity Distribution Company (WBSEDCL), MK Dey, says thermal units of WBPDCL have the capacity to produce 3,740 MW, but they are only generating nearly 2,600 MW. According to Dey these utilities “should generate at least 3,230 MW”. WBPDCL’s three units – set up by the Chinese power engineering firmDongfang’s technology – are also sick. “The Chineese equipment are problematic and have failed to impress us. A collapse of turbine blades in the Sagardighi Thermal Power Station in WB led to the closure of the station for over 80 days”, says Jagrithi Samithi’s executive president Balakrishna Shetty. All these are having a debilitating effect on state’s economy. It is unjust to hike power prices before addressing the crisis.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
The CPI(M)’s decision to increase electricity prices
in West Bengal has sparked a firestorm of criticism. The Left Front’s ruling partners are upset because they were not consulted in the matter. They say that at a time when the government is unable to provide uninterrupted power in cities and villages it is criminal to hike prices. Most upsetting of all is the fact that the power crisis was not even discussed in the last Budget session.Power outages during peak production hours have forced farmers and industrialists to bank on generators in a big way. And it doesn’t look like things are going to look up anytime soon. This is because the two mega projects of Infosys and Wipro are delayed.
Above all, the state-run Power Development Corporation Limited (PDCL) has to close its old units. Plus two of WB’s 4 x 210 Mega Watt generating units of Santhaldih Thermal Power Station have been phased out. Two more units are also on the verge of closure. One of six 210 MW units in Kolaghat Thermal Power Station is already closed. The remaining five units are generating about 700 MW, far below the minimum expectation of 900 MW. All the four 75 MW units of Bandel Thermal Power Station generating power for the last 45 years are in bad shape. They can hardly generate 60 MW. The only 210 MW or commonly 5th unit of Bandel is working efficiently.
While the PDCL is facing aging problem, huge dues with the Eastern Coalfields Ltd – a subsidiary of the Coal India Limited – is crippling its function. Now, the ECL has stopped coal supply and is asking the PDCL to clear its dues.
The power firm is having a difficult time following 50 per cent less rain at the catchments of dams – affecting normal functioning of the thermal power stations. Besides, the privatised firm CESC generates power with a shortfall of 250 to 300 MW and borrows it from WBPDCL. Chairman of the West Bengal State Electricity Distribution Company (WBSEDCL), MK Dey, says thermal units of WBPDCL have the capacity to produce 3,740 MW, but they are only generating nearly 2,600 MW. According to Dey these utilities “should generate at least 3,230 MW”. WBPDCL’s three units – set up by the Chinese power engineering firmDongfang’s technology – are also sick. “The Chineese equipment are problematic and have failed to impress us. A collapse of turbine blades in the Sagardighi Thermal Power Station in WB led to the closure of the station for over 80 days”, says Jagrithi Samithi’s executive president Balakrishna Shetty. All these are having a debilitating effect on state’s economy. It is unjust to hike power prices before addressing the crisis.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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