OPEN LETTER TO HON'BLE CHIEF MINISTER PUNJAB - POWER SHORTAGE IN PUNJAB

Submitted by RAJESH BEHL on Mon, 29/06/2009 - 6:27pm

To
    S. PARKASH SINGH BADAL
    Hon’ble Chief Minister, Punjab

SUBJECT: POWER SHORTAGE IN PUNJAB

Sir
Punjab has been facing acute power shortage and unprecedented power cuts mainly due to delay in the arrival of monsoon in the region. However to put the entire blame on nature and ignore our own failures will be disastrous for the state in the long run as delay in the monsoon has not happened for the first time. It is a matter of record that the demand-supply gap in the last 10 Years has increased manifold due to non addition of adequate generation capacity in the state and the network has become over loaded due lack of investment in the transmission/ distribution sectors. The public resentment against power shortages has now turned into anger leading to law and order problems for the state. Sir, mark our words, if immediate corrective steps are not taken, we may see “power riots” in the coming years since even after arrival of monsoon, the state may not enjoy cut free luxury on sustained basis.
The situation has become grim due to lopsided policies of the successive state governments. The previous government ignored capacity addition and depended on costly power purchase to mitigate power shortage. With peak power shortage touching 38%, the present State Govt. placed top priority to capacity addition with identification of three new thermal plants of 5940 MW capacity and revival of Goindwal Sahib project awarded to M/s GVK in 1998. However the state government despite repeated pleas of the technocrats not to depend entirely on the private developers, preferred to adopt the failed model of setting up power projects under private sector. The state cannot boost of becoming power surplus without investing even a single paise in any project.
All the states (except Punjab) have planned their capacity addition in the next 3-4 years mainly through Central or State Sector projects with private sector playing the supporting role. Haryana has planned 1800 MW in next 3 years with state funding, Rajasthan 1790 MW, Uttar Pardesh 2000 MW and Gujarat 2752 MW. However despite severe economic meltdown, Punjab has planned to add 6480 MW through private developers in the next 3 years which is totally unrealistic. In the last 2 years, private sector has added only 1632 MW in the entire country.
The power supply position in the state is going to worsen in the coming years as not even a single MW of new generating capacity is expected to be added in the state. The work at 1980 MW Talwandi Sabo thermal plant awarded to Vedanta group in August 2008 is yet to start with the group demanding various concessions which is totally illegal after award of work. This project is not likely to come up in next 4 years. With Punjab State Regulatory Commission declining to give approval to the unreasonable rates quoted by single bidder for the 1320 MW Rajpura project, the Board management on the verbal advice of state government has gone for re-bidding to find out private developer for the Rajpura thermal project. The process is likely to take time and the end result is uncertain. While taking decision to re-bid for the Rajpura plant, the state government did not consider it fit to consult technocrats appointed in the Board. Even if the project is awarded successfully to any private player, there is no possibility of the project to start generation in the next 4 years. Whereas 2640 MW Gidderbaha project is concerned, the response at the very initial stage of ‘RFQ’ was very poor & with coal linkage issue with Ministry of coal still unresolved, the bidding process has been held up. This project is also not likely to provide any relief in the next 4 to 5 years. The first unit of 540 MW Goindwal Sahib project is not likely to be commissioned before 2012. So the demand-supply gap is going to widen further in the next 3 years and Punjab may have to face power cuts much longer than what the public is facing now.
The real tragedy is that there is no plan in the Board or the government to tackle the increasing demand-supply gap in the next 3 years. In the present scenario the best alternative is to execute Rajpura Plant through state funding AND Gidderbaha plant in joint venture with NTPC. PSEB/State Govt. has to arrange 20 % equity which will not be more than Rs. 300 Cr. per year during the execution of the project and the remaining amount can be arranged through loans. Such a small investment should not be an issue for the state government which is paying over Rs. 2600 Cr. as subsidy for providing free power to a section of consumers.
The other step required to be taken urgently is to control demand by curbing wasteful use of electricity for which state government has to show its ZERO tolerance towards power theft. Various studies have shown that demand on the system can be reduced upto 30% by curbing theft. However influential consumers having right political connections consider it their right to indulge in power theft by intimidating the staff and officers of PSEB. Any resistance or adventure by an officer to tackle this menace results in harassment by way of transfers or thrashing in full public view, demoralizing the public servants. The end result is that honest consumers suffer due to the illegal acts of unscrupulous people.
Sir, we again urge the state government to re-consider its policy for adding new generation capacity in the state and hand over the construction of Rajpura plant to PSEB immediately. At the same time declare all out war against power theft and curb wasteful utilization of energy by adopting energy conservation measures to protect the interests of honest electricity consumers of the state.

Yours sincerely

(Er. Bhupinder Singh)       (Er. H.S. Bedi)
General Secretary           President

CC:

  1. Chief Secretary, Govt. of Punjab, Chandigarh
  2. Principal Secretary, Govt. of Punjab, Chandigarh
  3. Chairman, PSEB, Patiala
  4. Members of the Board