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Govt needs new agenda to make power sector vibrant
Zafar Bhat. Dated: 1/17/2018 10:55:07 AM
Zafar Bhat
Jammu, Jan 16
Categorically, the over-dependence on the private sector for the reforms in power sector is not good for the country and the country needs a balanced approach.
However, after more than two decades of power sector reforms in J&K it has failed to ensure adequate supply of electricity in the country, bring down AT&C losses, make the power sector vibrant, viable and profitable, bring in the benefits of competition in power generation and distribution by way of reduced tariff and better consumer services.
Notably, the very purpose of Electricity Act 2003 was to reduce the losses in the Power sector, improve the financial health of the sector & reduce the subsidy burden of Government. But due to faulty execution of policies the contrary has happened. The financial health of power sector has further deteriorated & Government is now even subsidizing private DISCOMS. What is more serious is that due to continued wrong energy policies banking sector may collapse under the burden of non-performing assets being generated by Power Sector.
Whereas, Electricity Act 2003 envisaged that with the setting up of independent regulators and distancing of government from tariff matters, the state distribution utilities would be able to achieve financial viability and thereby restore the financial health of the power sector.
While state Discoms resorted to loans from the banks and financial institutions to meet operational deficits, it has now resulted in a position of debt trap for many of the state power utilities.
The government need to launch various schemes to strengthen the power infrastructure in the State.
Pertinently, as per report, the central Government has sanctioned Rs 1885.02 crore under various centrally sponsored schemes for carrying out power reforms and strengthening sub-transmission and distribution network in Kashmir and Ladakh during the last three years.