IT Can Rid The Power Sector Of Its Ills: Nilekani

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New Delhi, November 26:: The government should use the best practices in information technology (IT) for improving the power distribution sector. A framework for creation of a comprehensive IT blue-print for the Indian power sector, to be implemented in a 3-5 year period, has been recommended by a high powered taskforce headed by Nandan Nilekani of Infosys.

The report of this taskforce was submitted to Union power minister Anant Geete on Tuesday. The report has pointed out that approach of various distribution utilities towards IT has been “piece-meal” with stand alone applications deployed for a limited operational requirement.

Terming the gap in IT adoption globally and in the Indian power sector as “apparent and glaring”, the report said, “in order to reap the benefits of it, the wide gap between India and global best has to be bridged.”

Taking a cue from global best practices, the taskforce has recommended creation of a comprehensive IT blue-print for Indian power sector and also suggested a 3-5 year implementation roadmap with both short-term and long-term IT initiatives.

For short term IT initiatives, it said priority must be given to the use of IT in commercial processes and in improving quality of supply in selected high revenue areas.

“Having started on the short term quick win areas, the long term areas would cover business processes,” the report said citing as an example, the expansion of billing into a comprehensive customer information system.

The report has noted that while India had made impressive progress in the power sector since independence, it has not been sufficient.

“In terms of generation, while new capacity has been added, the demand has far outstripped the supply leading to a widening gap. The primary reason for this widening gap lies in the distribution link in the value chain,” it said adding that distribution sector which formed the “weakest link” had to transform to make the sector viable.

The taskforce also felt that state electricity boards (SEBs) should have an effective management information system for decision support and improved decision making.

On the funding models for IT implementation, the report said, “SEBs have to look at various business models. It would be difficult for an SEB to implement these initiatives based on only a single project model.”

The taskforce has also recommended that SEBs and utilities should be facilitated in the process of selection of solution providers through accreditation policy at the national level.