Optimizing Power Availability -- Action Plan for Next Decade Challenges of Distribution -- Investment and Reforms 1

We started on Power Sector reforms over 20 years ago, and the Electricity Act, 2003 has been in operation for over 11 years. Where are we today ? We still have substantial load - shedding even in cities, supply restrictions for industry in evening hours, and rostering of rural supplies. Consumer tariffs are still as distorted as ever. In Haryana, we Rs 6 / kWh for domestic supply, whereas agricultural tariff is 10 paise / kWh. 2

Industry continues to be made non - competitive due to high tariff and poor reliability of grid supply, as well as by cost of back - up diesel - generation. Government only talking about more and more investment, and not about recovery of investment. Drastic measures required, but put under the carpet. 3

State utilities are still owned and controlled by the respective State Governments, and are not operating as commercial enterprises. Are we reconciled to continuing with the present set - up ? State utilities are still incurring huge financial losses, and are pulling down the whole Sector. How long can it be allowed to go on ? Huge investment required to cater to the ever - growing demand for electricity, and for ensuring 24 x 7 supply to all consumers, including those presently not connected. From where would it come ? With what conditionalities ? 4

Let us not waste our time and energy on issues which do not address the basic problems of the power sector: -- Open - Access for Consumers -- Competition in Transmission -- Independence of System Operators ( RLDCs & SLDCs ) -- Separation of Wires and Supply ( in Distribution ) Instead, let us focus on -- Bringing in Private enterprise to manage the Distribution system, country - wide -- Rationalization of Consumer Tariff 5