Sunday 9 February 2014

Power Plight

The fruits of privatization must be savored by consumers. If CAG audit of discoms reveals otherwise, the bleak side of privatization will be re-affirmed. 


The power spat in the national capital has been temporarily avoided thanks to Supreme Court. On Friday it ordered Reliance Infrastructure owned BSES firms to pay 50 crores to NTPC, India’s largest power generation utility, within two weeks. NTPC had recently threatened BSES firms to stall power supply had they failed to pay their dues in the stipulated time. Collectively BSES-Rajdhani and BSES-Yamuna owe 300 crores to the NTPC. However, in a reprieve to them, SC has settled the matter at much lower payment till the next hearing due for March 26.

The modus operandi of power sector in Delhi is complex. Amid accusations and cross accusations of corruption and poor governance, it is being hard to identify the malady ailing the power sector. BSES firms assert that the Delhi government is required to pay them subsidy amount so that they can recover their operational costs. They also contend that once government pays them under-recoveries, they will make payments to NTPC. To this Aam Aadmi Party led Delhi goverment hits back stating that the distribution companies are not making losses. They just tamper with their balance sheets to show losses on paper but actually they are incurring profits. The Delhi government has also clarified that the subsidy amount due to discoms from it shall be adjusted against the receivables of government-owned Delhi Transco Ltd, the power transmission company, and the generation utilities, Indraprastha Power Generation Co. Ltd and Pragati Power Corporation Ltd.