DAILY POST CHANDIGARH Power sector changes have failed: NIPEF Patiala The power sector of country is in a mess. Its reform process that started 20 years back has not been implemented whole-heartedly. This was stated by VK Gupta, Finance Secretary of the Northern India Power Engineers Federation (NIPEF) on Sunday. He added that the experimentation in power sector is the policy failure on the part of policy makers. He highlighted that states were dependent more on power purchases than going for capacity addition in state sector. “The power purchase worth thousands of crores of rupees is being made every year by most of the states as the politicians and bureaucrats at the helm of power utilities can make easy money with no trace of proof,” he alleged. He also said that the state governments prefer power purchases on short-term basis as there are great fluctuations in power purchase cost. “Even in the signing of long-term power purchase agreements, the state choses to look other way over the power availability from state sector thermal units,” he added. Gupta said the recent closure of state run thermal units in Gujarat and Haryana were a typical example of this. “Both states signed long-term power purchase agreements with Adani for supply of power from its Mundra units. State power generating units were being shut down to enable private sector projects to run at full capacity and earn maximum profits at the cost of state Discoms,” he said.
Posted on: Mon, 16 Sep 2013 23:49:55 +0000
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