Looking to power the state forward

Power games. Yes. Power strategy. What’s that?

That’s the state of our state. Consider this.

Despite having the highest consumer base in the country, Maharashtra did not add a single mega watt of capacity in the decade ending 2008.

Reason: Analysts point to an overdependence on the Dabhol power project (Enron). The result: “The state which boasts an industrial production of around Rs85,000 crore has an electricity demand-supply gap of around 5,500 MW during peak hours,” says Ashok Pendse, a power activist.

Maharashtra, the second-largest state in India in terms of area as well as population, consumes almost 12% of India’s electricity. An economic growth rate of 8.4% from 2002 had spurred the demand. But, it also pushed the state into an acute power crisis in 2005 with peak shortages of around 5,000 MW.

A large part of the state had to undergo power cuts ranging from 6 hours to 14 hours daily. Even at other times, the power supply was not reliable because of old and outdated distribution infrastructure. People were also burdened with huge electricity bills because of very high distribution and commercial losses, at around 35%.

Shantanu Dixit of the Pune-based think tank Prayas, which tracks energy-related issues, underlines lack of planning as a reason for why the state finds itself in its present situation. “Adhocism in the planning process is responsible for Maharashtra’s power woes. For instance, Mahavitaran, the distribution company, has seen five managing directors in six years. If there are constant changes in leadership, motivation to progress or accountability is completely lost,” said Dixit, a panelist for the July 10 State Summit organised jointly by DNA and Zee 24 Taas with the support of the Maharashtra government.

Lack of coordination among various government departments is another reason. A classic example of that is of R-Infra and Tata Power’s plants at Shahpur in Raigad district, where the companies had overlapping land parcels allotted by different government agencies.

Power projects in Maharashtra also face opposition from local communities. The Indiabulls project is being opposed by farmers who feel that the project will reduce the availability of water for irrigation from the Upper Wardha dam. The Adani group’s 1980 MW project has acquired land and secured environmental clearances as well as the all-important coal linkage.    

But the project has hit an air pocket with environmentalists as the proposed mine site is right next to the Tadoba tiger reserve; they fear the use of 50 tonnes of explosives daily to extract coal will destroy the state’s largest tiger reserve.

If local opposition to power plants is not enough, the state is plagued with high transmission and distribution losses as well as galloping demand.

“Thefts are not so much of a concern. We have brought down technical losses by upgrading infrastructure and commercial losses through anti-theft drives, more effective metering and franchising,” said Ajoy Mehta, managing director of Mahavitaran, the state-owned distribution utility, also a panelist at the summit. “The issue bothering me the most is from where do I source fuel for energy? Importing coal is expensive. What are the cost-effective alternative sources for generating electricity?” The answers to these questions, and many others, will be mulled over in a discussion likely to be intense as well as productive.

Panelists at the summit include Dilip Walse-Patil, former energy minister as well as speaker of the Maharashtra assembly; Subrat Ratho, principal secretary (energy) and managing director, Mahagenco, state-owned power generation company; Jayant Deo, managing director and chief executive officer, Indian Energy Exchange Ltd and former member of Maharashtra Electricity Regulatory Commission; Ajoy Mehta, managing director, Mahavitaran, state-owned power distribution company; and Shantanu Dixit, member, Prayas, an organisation which tracks energy.