23rd April

Optimism on generation

The article talks about the reforms that need to be implemented in the power sector to minimize power thefts which forms the major part of AT&C (Aggregate Transmission and Commercial) losses.

The 4000 MW ultra-mega Sasan power project of Reliance got financial closure in the form of legally binding commitment from its equity holders and debt financers. With low fuel prices, exploration of gas from KG basin, more power projects would take off in future. But without reforms in electricity distribution, everything is vain. Seven states haven’t been able to unbundle their SEBs as per the Electricity Act of 2003. AT&C losses are still over 30%, with some states even recording 40-50%, in spite of govt grant of Rs 40K crores over the tenth plan through Accelerated Power Development and Reform Program (APDRP). AT&C is euphemism of power theft which can be curbed by installing Distribution Transformer (DT) meters but it is still not implemented in most of the states. By March 2008, only three states achieved 80-100% DT metering. Average realization remains lesser then average costs resulting in huge losses by SEBs. While incentives haven’t worked evidently here, it is important to build political consensus to achieve large power reform. Gujarat govt has shown that power sector reforms are possible without losing vote banks. 

While cost of providing free electricity to farmers is so low that if govts curb the theft effectively, they would have spare electricity for all their vote banks without compromising with viability of SEBs. Shrewd politicians have already realized the benefits of power reforms.

Civilian plight in Lanka

The article emphasizes on prioritizing the refugee relief in Sri Lanka and providing them a country where they feel more a part of the nation rather then a segmented community. Such atmosphere would also help curbing resurrection of militarism in future.

While humanitarian crisis are at its peak in the region, it is a litmus test for Rajapaksa regime to provide the relief and rehabilitation to refugees before going for post-LTTE reconstruction and inclusive govt when the war would be over. Given the history of chauvinist Sinhala form of military tactics, the strategy for the future governance is debatable but for now as he send a special emissary to India to discuss rehabilitation measures for the refugees, he has send some positive signals. For India, it is important to prevent the spill over effect of crisis to Tamilnadu. It should, like other countries, immediate ask Sri Lanka for ceasefire to enable the remaining civilians to escape from the war-field. With more casualties and civilian sufferings, Tamilnadu would definitely react. But the state should make a distinction between the legitimate rights of Lankan Tamils and existence of LTTE. 

As of now, Colombo should have delivery of its promise of rehabilitating refugees as a top priority. A human catastrophe at this stage could act as an ingredient to resurgence of military extremism in future.