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Question
Discuss the reforms which have been initiated recently to meet the energy crisis in India.
Solution
The following reforms have been initiated by the government to meet the energy crises:
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Privatisation in Power Generation Sector: The government earlier had the monopoly in the generation and distribution of electricity. Now, private sector has been given the rights to generate power.
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Privatisation in Power Transmission:The Indian government has approved Tata Power and Powergrid Corporation of India for constructing transmission networks in joint venture.
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POWER for ALL by 2012: The Ministry of Power has set up an objective of ‘POWER for ALL by 2012’ to achieve the target of 1000 KwHr (Units) of per capita consumption of electricity in India. This objective is aligned with the objective to achieve an economic growth of 8% p.a. The main motive of this target is to improve the quality of power, improve the commercial viability of power industries and to provide power to all.
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Setting up Regulatory Mechanism: The Central Electricity Regulatory Commission (CERC) along with State Electricity Regulatory Commissions (SERC) has been established in 19 states under the Electricity Regulatory Commissions Act, 1998. These commissions and authorities regulate tariff, promote efficiency and competition.
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Encouraging FDI: In order to achieve the target of POWER for ALL by 2012, the Ministry of Power aimed at attracting US $250 billion of Investment (FDI and Domestic Investment Combined) into the power sector.
- Accelerated Power Development and Reform Programme (APDRP): APDRP has been initiated in the year 2000-01 with the motive of improving financial viability, reducing transmission and distribution losses and promoting transparency through computerization.
- Awareness: The government is encouraging people to increase the use of renewable resources and also creating awareness among the people to reduce the conventional resources. During the Eight Five Year Plan, government has set up National Energy Efficiency Programme (NEEP) that aimed at conservation of petroleum products.
- Improving Productivity: The Indian government has been emphasising on the measures to improve the productivity of the existing power generating industries.
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