New Delhi: Disappointed with the development in power sector, Confederation of Indian Industries (CII) has termed the situation of the sector as one step forward and few steps backwards-resulting in zero sum net game with enough being talked and not much being done to demonstrate tangible results on ground.
Some of the recent developments on energy front have been a mixed bag and can be described as one step forward and few steps backwards-resulting in zero sum net game with enough being talked and not much being done to demonstrate tangible results on ground. The sector continues to carry the tag that sector is a laggard on economic performance.
Terming India as a happening and buzzing country on the global map CII said that on the energy front they have not been able to make things happen the way they have successfully done in telecom, information technology, knowledge and business process outsourcing, services, retail, and biotechnology.
The constitution of the Energy Coordination Committee (ECC) headed by the Prime Minister and Energy Implementation Committee (EIC) headed by Cabinet Secretary has been a remarkable achievement.
Setting up of ECC and EIC would help and enable the energy sector to work in cohesion and resolve issues amicably and within noticeable timeframes.
It points out that in India the energy sector is being administratively dealt by five different ministries with each one of it working in isolation and the nation for long has missed on the benefits which coordinated approach could have made possible. A single agency is required to ensure coordinated, synergetic growth in the power sector.
India is facing a shortage of fuels such as coal and gas. Almost 2,000 MW power capacity in the country involving investments of Rs 8,000 crore is at cross-roads due to unavailability of gas.
The industry chamber welcomed some of the amendments to Electricity Act 2003, particularly related to captive power generation and giving more authority to law enforcing agencies to curb power theft. The chamber said it was essential to curb the commercial losses of Rs 28,000 crore incurred by state electricity boards every year in order to turn the sector around.
It also expressed disappointment over the delay in the enactment of the draft power tariff policy. CII hopes that the document would be shortly finalized and issued to help the electricity regulators move uniformly in tandem with the policy on tariffs, which is critical area to the functioning of the utilities working across the electricity value chain.