Tuesday, August 7, 2012


Two massive grid failures halt Indian economy and the government and planners of this global super power in waiting tend to ignore it as a one off occurrence. They seem to be hell bent on reforms on FDI in retail, aviation and insurance as if these will take care of all the woes Indian economy is facing today. Good economics is certainly not at the back of these initiatives as it can at best decrease the current account deficit. to a limited extent as the foreign investors will be far too wary to invest in a country which cannot ensure power to factories, cold storage and even for logistic support.This route at best could be termed as good politics for the resistance to these measures by majority of political parties is well known and the ruling polity can emphasize on the fact that they were not allowed to carry out reforms by those opposing them during next general elections.
If the government succeeds in providing excellent infrastructure in terms of movement of goods, means of communication, uninterrupted power supply, cold storage facility and backing to large retail chains, there is enough capability in the Indian corporate sector to excel in this huge economic activity which will provide benefits of organised sector to a very large workforce and creating enormous wealth for the country.
Coming back to power sector, it is a harsh fact that the executive of the country including legislative executive  neither has the will nor the expertise to take on any mission on concurrent activity model. The consequences of serial implementation of power capacity additions are there for the whole country to see. The planners laid all accent on generation capacity additions so much so the transmission and distribution aspects as also the fuel linkages were not even thought of. Add to this the increase in the international prices of coal and gas and the sad result is that about 30000 MW can not be utilised for want of fuel, transmission lines and proper distribution network. In the bargain country is reeling under the pressures of acute power shortages affecting the lives of millions as well as Industrial production, all because of the inability of planners and executors of the policies of the country to work in a coordinated efficient manner.