The performance of the power ministry under Sushil Kumar Shinde came in for criticism by finance minister Pranab Mukherjee at the meeting of the Union Cabinet on Thursday.
According to sources, Shinde suffered some embarrassing moments when Mukherjee, virtually No. 2 in the government, pointed out his inability to meet the projected power generation targets during a discussion on the subject.
Prime Minister Manmohan Singh, who was also present, remained silent.
The Cabinet this morning took up the matter of approving modifications in the existing megapower policy, as it had failed to attract private players into the field of power generation.
For the last several years, the power ministry has marked out ambitious targets but has not been able to meet them. In 2007-08, the ministry promised to generate an additional 16,500 mw, which was later pared down to 12,000 mw. Ultimately, it was only able to add 9,300 mw of power. In the current year 2008-09, the ministry put out projections of 11,061 mw, which it revised to 7,530 mw.
According to sources, Shinde cited non-availability of coal and gas besides changes in classification of power projects as some of the factors that had led to the ministry not being able to meet its target.
He told the meeting that he had set up a special committee comprising former power secretaries to look into the issue.
The issue is obviously critical for the Congress-led UPA as it is not only directly linked to growth performance indicators but also lends itself as a potent election campaign issue in the hands of the opposition. In states like Punjab and Uttar Pradesh, for instance, power cuts have risen to the extent of 10 hours each day in most towns and rural pockets.
It is also an issue in Maharashtra and Haryana, states that are scheduled to go to polls next month.