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NEWS  EDITORIAL

T&D needs more attention

EM NEWS BUREAU ,  Thursday, August 18, 2011, 15:03 Hrs  [IST]

With the XI Plan period in its last mile, the focus is now shifting to the XII Plan period that begins for a five-year period from April 1, 2012. When one looks back at how the power sector has done in the XI Plan period, it is a mixed bag of achievements. In terms of relative accomplishment, yes it compares very favourably with the ignominious X Plan. In absolute terms though, the XI Plan will leave a legacy of unfinished targets to its successor. There has been under-performance, of varying degrees, on all counts—power generation, transmission, distribution, policy reforms, etc. If there could be one redeeming note, it is the increased involvement of private sector enterprise in building new power generation capacity—mainly thermal energy but also renewable sources like wind and solar.

It is officially estimated that the power sector will attract investment of Rs.jpg13 trillion in the XII Plan period, at least 30 per cent more than the actual performance in the XI Plan. The XII Plan will, for the first time, see investments in the power generation side (around Rs.jpg6.5 trillion), matching that of the T&D sector. This is by far the noblest of all intentions.

Creation of more generation capacity addresses the supply side in isolation. It is only the first step toward building a healthy power supply chain. True merit lies in being able to create robust T&D infrastructure that will ensure that not only does sufficient power reach the consumer but technical & commercial losses are minimum, or at least respectably low.

The true test in the XII Plan period will therefore be on state power utilities to redouble their efforts on the T&D front. While Central transmission utility Power Grid Corporation of India will ensure that the National Grid is in place, enabling inter-regional transfer of around 37,500 mw by March 2012, state utilities will have to create evacuation for intra-state movement of power.

The power ministry's directive asking states to formulate their T&D infrastructure plans in advance—ahead of imminent generation capacity— is a meaningful step. It is also worth noting that instances of private sector participation in power transmission at the state level are slowly growing in number. Uttar Pradesh recently handed two mega intra-state schemes to the private sector. More such success stories will be needed to make sure that the weakest states are inspired enough to emulate achievements of their healthier counterparts.

While transmission and distribution are always spoken of together, they are indeed two separate issues. Transmission is still more manageable but distribution is the murkiest link in the power chain. Generating enough political will for privatization of power distribution in urban centres, at least where ATC losses are unacceptably high, is a big opportunity for state governments as well as power utilities to think, plan and execute differently. Only then will final results be any different from the plebeian achievements thus far.
 
                 
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