Indian Power Sector - Is it Recovering in a Real Sense - A Wider Scenario
7.18.05   Sidhartha Das, Head of Group (CAC), North Delhi Power Limited

More than nine decades passed before the electricity act of 1910 was finally revisited in 2003. It saw a paradigm shift from what was going on and what would be the future of Indian Power Sector. But, has the progress been in right earnest. Some may agree while others might disagree vehemently. The reason is loud and clear for all to see. Not everybody is getting adequate power because of the high amount of corruption and nepotism existing in the country. It is in fact so much so deep rooted that it becomes difficult rather a humongous task to uproot it.

 

Accountability was always there. There were persons within the organization who would have liked to see their work bringing relief to the consumers of electricity. But these people were governed by corruption, nepotism and bureaucracy. Again, if you delve a bit deeper, you would find that the meager income that these persons used to get led them to high amount of corruption. Not only that, we are forgetting one more important aspect and that is “recognition”. There was no recognition whatsoever and still there is no recognition. Illiterate people with scanty knowledge used to get a good position in the Electricity Sector by paying some politician or for that reason any bureaucrat a hefty sum and deserving candidates used to get left out. It’s just that India didn’t try to ensure accountability though it was very much there.

 

A mindset that rules still extreme in today’s power sector even after so much of de – regulations is that newly appointed candidates don’t know anything and that what they talk is not required in the organization for serving the consumers better. A pure play of “POWER & POLITICS”. No doubt, there is not a single organization which doesn’t have a hint of power and politics involved but the percentage of this is nearly 90% in India. No effort is being made to discuss issues on a strategic basis but decisions are mostly whimsical in nature in the Indian Power Sector. As a result, Indian power sectors stand to lose a great deal in times to come. A lot stands to be done in order to ensure that Indian Power Sector reaches world class standards.

 

It is true that public has not been very much proactive in their approach due to the reasons stated by Mr. Ashok Dhillon. But there lies another aspect. Even with de – regulations though most people have ventured to be proactive and have come forward but somewhere they have to suffer because of improper implementation of work by these organizations. Nothing stands symmetrical in nature. Everything is so much so absurd and all we have inside the organization is “MIS” which has got no meaning because it doesn’t depict the real state of the work that has been completed. This happens due to the lack of proper training and again because of the so much rampant “Power & Politics” at the senior management level. No defined CRM structure, No defined financial structure, nothing at all exists even after two years of passing of the Indian Electricity Act. And we are talking of recovery. It has been fire fighting from the beginning and is still continuing without a proper thought to the future.

 

As I had stated in my earlier article titled “Can Sophistication co – exist with Reliability across Power Sectors in India?”, power sector organizations in India are going on implementing new technologies borrowed from developed countries like Canada, USA, France but how many of the employees know the use of it or even know what is happening and how it can be beneficial to the consumers? Guess, except for the few senior management personnel, nobody knows and we are talking of transparency.

 

Rightly said by Mr. Dhillon in his article titled “Indian Power Sector – The Road to Recovery” that outright privatization is required but what do you do of the employees whom the private sectors discard on take over, merger or even acquisition? That in itself is a great hindrance since if these employees are not paid pensions (as every government servant does in India), then a strike would be staged by the still employed persons which hampers proper working conditions which is a common sight in India. A few more years down the line can’t even see the accountability these private power players want to see because of the still growing population, corruption (like promising of free power by the politicians to amass votes), nepotism and bureaucracy. Point well taken that credit must be given to those politicians who dared to propose the change but are they still in power? Can they finish what they started? Unfortunately the answer stands a big “NO”. What about those who are in power and create havoc at the centre? A point to be pondered upon.

 

Every election happens with a hope that situation will change but every time situation worsens. What will be fate of these private power distribution companies when in the year 2007 which is just a few blocks away, open access comes into existence? Are these private players ready to compete or can they compete? The situation looks bleak since to purchase power these private power companies have to generate money and with the amount of losses going on, can it be possible that they can go for an IPO? Theft is till rampant among the urban poor. No methods are being adopted for energizing because the tariff would pose a big problem. It is still that “accepted thing” which rules the roost. It is very much easier to manipulate and project excellent records for the world to see but it remains to be seen how far the records are correct. There are so many questions which need an answer to.

 

Again, as stated earlier, there is no defined approach for anything and there stands a high amount of attrition rate in these private power distribution companies. Reason is loud and clear that the interests of the employees (junior and middle management) are being ignored.

 

Fact well taken that a major change in attitude both of the governing bodies and the public service coupled with the realization by the public that they cannot be a part of the problem and at the same time expect positive change (as in the theft of power), will bring about accelerated recovery and renewal but who is going to stop it? The Public, the Police or The Organization? Well, one might jump in here and say that politicians might be able to help. That’s a far fetched thought. Again, one might take an ideal situation and say that “The Public” will be responsible. But try to think like an Indian, if somebody raises an alarm, then his/her family members pull him/her back and say “You are not the only person to raise a voice” or even he might be killed by a mob or even by these politicians. And we are talking of recovery.

 

A lot needs to be accomplished right from these governing officials to these politicians to the senior management who think that they know everything. Only then one can think of an ideal power distribution in India with minimum amount of losses and reach world class standards. Unless the mindset, the way works are being implemented, the fire fighting approach changes, it is very much difficult for an Indian Power Sector to sustain itself in times of turbulence which is only a few blocks away.

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