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Blatant Power Theft - Murky Power Scenario Is Pushing Two Rich States Into Gloom


By Dixit Archana, Section Electricity
Posted on Tue Mar 11, 2008 at 04:21:16 AM EST

Uprooted electricity poles lie strewn all around the dusty road leading to Kair Kheri village in Haryana's Jind district.

There, on a charpoy, a group of louts are playing cards. Amar Chaudhary, one of them, lifts his head to let us in on what's a tell-tale story of brute resistance to authority: "Last October, people from the nearby subdivision came to instal the HVDs (high-voltage distribution system meant to check power thefts) in our village. We just beat them up and forced out their poles. How can they impose on us something that we do not want?" In adjoining Nagooran, Prem Singh and a group of farmers are unrepentant at increasing the size of their submersible motors without paying the enhanced security deposit. Says Prem: "If any official comes here, we will hit them with a sickle. Why should we pay our bills when it is the department's own staff that facilitates power theft?"

Welcome to Haryana's Jat heartland, where power theft accounts for a whopping 34 per cent of electricity losses. In neighbouring Punjab, farmers, brought up on a diet of free power, waste much of it, using it to overdraw water from fast-depleting groundwater aquifers. So it isn't surprising that two of the nation's most prosperous states are facing their worst power shortages ever--leading to widespread agitation--and the government machinery is helpless. "There's very little we can do," is the refrain among electricity department officials.

Try telling that to farmers, students, factory owners or activists, who have revolted, blocked roads or just beaten up electricity department officials in frustration at the long power cuts. Households in rural areas were getting just two to four hours of electricity a day. It's only after students raised a hue and cry ahead of impending examinations that the supply was raised--still only to six hours a day. The stir only intensified. "A few days ago, we took two tractorloads of people to the substation and beat up the staff there," says Zile Singh in Ahirka village. "Our children are unable to study. For more than a year, we are getting just 4 to 5 hours of electricity a day."

The bleak power scenario is jeopardising Haryana's dream of becoming the newest sunshine state. When chief minister Bhupinder Singh Hooda took a bow at the recent CII convention in Gurgaon for being the best investment destination in the country, he carefully skirted the issue of his government's dismal failure in providing sufficient power for industry. Power minister Randeep Singh Surjewalla points out that the demand for power was going up by around 17 per cent annually in Haryana, and in some districts like Gurgaon and Faridabad by almost 20 per cent. "Though we have set in motion additional capacity generation of 4,550 MW, which will come through in the next four years or so, even this may not be enough to meet the burgeoning demand," he says.

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Industry in cities like Gurgaon and Faridabad is getting just eight hours of power a day as against 18 to 20 hours earlier. Says Rajender Nath, president of the Haryana Chamber of Commerce and Industry: "It's all a joke. Cuts are generally unscheduled. Some days you get power for two hours, some days up to seven hours.... You never know." Most major industries have set up their own captive generation plants, but Nath says the hike in diesel prices makes this power expensive--at double the cost of regular power supply. "It has hiked up our production costs substantially. That is why the industries associations across the state are agitating," he reasons.

Officials says the situation has been compounded by failure of winter rains, leading to increased demand for power for irrigation purposes. Reveals J.S. Sekhon, member (distribution) of the Punjab State Electricity Board: "Against peak demand of 750 lakh units a day in December '06, the demand this year is about 1,100 lakh units.

" Punjab was only able to generate 850 lakh units a day, and much of the potato crop and some vegetable crop has been damaged.

The problem is that planned power capacity is inadequate in the face of rising demand. For 2008-09, as against a demand of 7,335 MW per day in Haryana, the proposed capacity is about 4,873 MW. But effective availability is expected to be in the range of 2,800-3,000 MW per day. Similarly, in 2009-10, demand is projected to shoot up to 8,362 MW while capacity would increase to 6,616 MW. As for Punjab, it's facing a deficit of 41.2 per cent, and that's expected to go up in the next two years. In any case, no significant new generation capacity has been added since 1999 when the Ranjit Sagar Dam began producing 600 MW. Demand in 2012 is expected to be a staggering 14,000 MW.

Both states say they have now begun planning for the future. Haryana plans to add 4,505 MW capacity, and is banking on the 600 MW Yamunanagar Thermal power plant which has just begun sputtering to life after a gestation period of more than a decade. The state has also tied up with central public sector undertakings and independent power producers for power, but this will come on stream by 2010. Punjab, on the other hand, has set its hopes on Stage II of the 500-MW Lehra Mohabat thermal plant likely to begin production this May.

Clearly, with no new power projects--barring Yamunanagar--in the near future, Haryana's best bet is to crack down on power theft and reduce its abysmal transmission and distribution losses (a euphemism for power theft) of 34.55 per cent. But this is easier said than done. Both Punjab and Haryana have begun installing HVDs to check power thefts. While Punjab has managed to make significant progress due to political backing, in Haryana it's a different story. The state aims to complete installation of HVDs by end-2008 at a cost of Rs 500 crore. But take a look at just one circle of Jind: HVDs compliance there is just 10 per cent and officials point out that they are not touching the critical villages at all for fear of the political repercussions.

With massive power cuts even during winter, both Punjab and Haryana are gearing up for a long and powerless summer. The message to industry is to "get their own power" through the open access system. It's going to be a long hard grind ahead. But, apart from the common man, few seem unduly worried.

Source:Outlook ,March-11-2008

< RBI: All Payments Of Rs 1 Crore And Above Will Be Done Only Electronically, Starting April 2008 | Danish Sugar And Food Ingredients Group Danisco's India Invests $8 mn In Haryana >

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