The power struggle
Anil Sasi: Nov 20 2012, 01:25 IST
the projected demand equation has not helped matters, threatening to further exacerbate the current situation where idle generation capacity co-exists with rampant cuts in power supply to consumers. Plus there is the challenge of reopening PPAs for projects based on coal supplies from abroad such as Tata’s Mundra UMPP and Reliance’s Krishnapatnam UMPP, where developers now claim the pricing of foreign coal has rendered the project unviable. To top it all, the problem on the distribution side continues to fester, the bailout by the Centre notwithstanding. Till the time states decide to sort out the mess in their respective distribution sides, interventions by the Centre could still fall short of fully restoring the viability of the power sector, easily the biggest drag on India’s growth story. For new power minister Jyotiraditya Scindia, it’s a stiff task ahead with very little time to spare.
Anil is a Senior Editor based in New Delhi.
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