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Memories of Another day

Memories of Another day
While my Parents Pulin babu and Basanti devi were living

Saturday, January 23, 2010

Electrifying Electricity


Electrifying Electricity!

Indian Holocaust My Father`s Life and Time- Two Hundred SEVENTY One

Palash Biswas


http://indianholocaustmyfatherslifeandtime.blogspot.com/

  1. Electricity sector in India - Wikipedia, the free encyclopedia

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Core sector logs 6% growth in December

Business Standard - ‎Jan 22, 2010‎
The six core sectors--crude oil, petroleum refinery products, coal, electricity, cement and finished steel--have a weight of over 25 per cent in the ...

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Kanika Datta: Labouring under illusions

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It is worth wondering how far the fulsome national coverage Jyoti Basu received this week was warranted, except on the basis of his record as India's ...

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532955 - Rural Electrification Corporation Ltd. (BSE)‎

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Political Economy of the Electricity Subsidy   (23rd September 2006)
     Varinder Jain
          The electricity subsidy distribution pattern needs to be scrutinised to assess whether the policy benefits small producers, a normative argument often made while granting any input subsidy. In Punjab, this policy is found to ignore equity considerations while granting non-discriminatory electricity subsidies to the agricultural sector. This study highlights the existence of disparities in the flow of electricity subsidy between the advanced and backward regions. While the medium and large farmers reap the major benefits of the subsidy, the poor small farmers, especially in the backward areas, remain excluded due to their non-possession of electricity connections. In a nutshell, this paper questions the justification for introducing such a policy and puts forward the case for user charges based on open access to electricity.
http://www.epw.org.in/epw/user/loginArticleError.jsp?hid_artid=9113

Political Economy of Electricity Subsidy: Evidence from Punjab

Jain, Varinder (2006): Political Economy of Electricity Subsidy: Evidence from Punjab. Published in: Economic and Political Weekly 38 41 (2006): pp. 4072-4080.

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Abstract

The electricity subsidy distribution pattern needs to be scrutinised to assess whether
the policy benefits small producers, a normative argument often made while granting any
input subsidy. In Punjab, this policy is found to ignore equity considerations while granting non-discriminatory electricity subsidies to the agricultural sector. This study highlights the existence of disparities in the flow of electricity subsidy between the advanced and backward regions. While the medium and large farmers reap the major benefits of the subsidy, the poor small farmers, especially in the backward areas, remain excluded due to their non-possession of electricity connections. In a nutshell, this paper questions the justification for introducing such a policy and puts forward the
case for user charges based on open access to electricity.

http://mpra.ub.uni-muenchen.de/240/index.html

State Electricity Boards

Click Here for Specimen Table  
Figures at All-India / State level : (Currently showing India with State Level consolidated figures) | Andhra Pradesh | Arunachal Pradesh | Bihar | Gujarat | Himachal Pradesh | Kerala | Madhya Pradesh | Maharashtra | Orissa | Punjab | Tamil Nadu | Uttar Pradesh |

(Data table headings are shown Year-wise in descending order)


  Selected State-wise Foreign Financial Assistance Provided to State Electricity Boards (SEBs)/Power Utilities by Funding Agencies in India (2006-2007 and 2007-2008)
  Region/State-wise Profit/Losses (Without Subsidy) of State Electricity Boards (SEBs)/Power Utilities in India (2005-2006 to 2007-2008)
  State-wise Commercial Profit/Loss Without subsidy of Power Utilities in India (2001-2002 to 2005-2006)
  Amount of Railways Outstanding Against Various Power Houses/State Electricity Boards (SEBs) in India (As on 30.09.2005)
  Commercial Losse (Without Subsidy) of State Electricity Boards/Utilities of India (1991-1992 to 2004-2005)
  Outstanding Dues of State Electricity Boards to Railways in India (1999-2000 to 2004-2005)
  State-wise Estimated Net Return on Investments of Power Sector in India (2000-2001 to 2004-2005)
  State-wise Rating Exercise of Power Sector in India (March, 2005)
  Outstanding Dues of State Electricity Boards to Railways in India (As on 30.09.1996, 31.03.2004 and 30.09.2004)
  State-wise Outstanding Dues of Each PSU Payable by State Electricity Boards in India (As on 31.10.2004)
  Outstanding Dues of State Electricity Boards/Power Houses in India (As on 31.06.2001 and 31.03.2003)
  Selected State-wise Average Position of State Electricity Board in India (2002-2003)
  Selected State-wise Cash Profit/Loss of State Power Utilities (Subsidy Received Basis) in India (2000-2001 to 2002-2003)
  Average Cost/Unit of Traction for Various State Electricity Boards/Power Supply Authorities in India (2000-2001 and 2001-2002)
  Dues Recoverable from State Electricity Boards by Railways in India (End April 2002)
  Estimated Amount Spent on Power Supply by SEBs in India (1999-2000 to 2001-2002)
  Financial Performance of SEBs in India (2001-2002)
  Outstanding Dues (Indicative) Payable by SEBs to Central Public Sector Undertakings (Including Surcharge) in India (As on 30.09.2002)
  Outstanding Dues of the State Electricity Boards to Railways in India (As on 31.01.2002)
  Renovation and Modernisation Schemes under Progress in Thermal and Hydro Power in India (During 2001-2002)
  State Electricity Board-wise Outstanding dues regarding Coal Sale in India (As on 31.01.2002)
  State-wise Commercial Profit/Loss of SEBs (with Subsidy) in India (2000-2001 to 2001-2002)
  State-wise Outstanding Dues (Indicative) Payable by SEBs to Central Public Sector Undertakings (Principal and Surcharge) in India (As on 30.09.2002) Part - I
  State-wise Outstanding Dues (Indicative) Payable by SEBs to Central Public Sector Undertakings (Principal and Surcharge) in India (As on 30.09.2002) Prat - II
  State-wise Private Companies Accorded Techno-economic Clearance by the Central Electricity Authority with Installed Capacity in India (During 2001-2002)
  State-wise Repayment of Rupee Term Loan by State Electricity Boards/State Sector Borrower to Power Finance Corporation in India (As on 31.03.2002)
  State-wise Total Outstanding Dues Received by NPCIL from SEBs in India (As on 30.06.2002)
  Total Dues to Railways by Various State Electricity Boards in India (As on 31.01.2002)
  Cost of Power Generation of Various SEBs in India (During 1999-2000 and 2000-2001)
  Dues Recoverable from State Electricity Boards/Power Houses by Railways in India (End of December 2001)
  Performance of State Electricity Boards of India (2000-2001)
  Pilferage/Misuse of Energy as Reported by State Electricity Boards in India (2000-2001)
  Region-wise Manpower Engaged in State Electricity Boards, DVC and Power Corporations in India (As on 31.03.2001) - Part I
  Region-wise Manpower Engaged in State Electricity Boards, DVC and Power Corporations in India (As on 31.03.2001) - Part II
  Setting Up of Coal Based Power Plants During IXth Plan in India (As on 1st December, 2001)
  State-wise and CPSU-wise Summary of Outstanding Dues to be Securitised under the One-Time Scheme in India (As on 1.10.2001)
  State-wise Commercial Profit/Loss of SEBs (without Subsidy) in India(1992-1993 to 2000-2001)
  State-wise Disbursement Financing SEBs by REC and PFC in India (During 1998-1999 to 2000-2001)
  State-wise Disbursement of Power Finance Corporation in India (1998-1999 to 2000-2001)
  State-wise Outstanding Dues of State Electricity Boards to Central PSUs (Principal and Surcharge) in India (As on 30.9.2001) - Part I
  State-wise Outstanding Dues of State Electricity Boards to Central PSUs (Principal and Surcharge) in India (As on 30.9.2001) - Part II
  State-wise Summary of Sanction (During 1998-1999 to 2000-2001)
  Cost Generation of Coal Based NTPC Projects in India (During 1999-2000)
  Institutions against whom the Arrears were due on Account of Coal Supply in India (As on March, 2000)
  SEBs/State-wise Outstanding Dues Payable (Including Surcharge) to Central Sector Power Corporation in India (As on 29.2.2000)
  State-wise Commercial Profit/Loss of SEBs (with Subsidy) in India (1992-1993 to 1999-2000)
  State-wise Power Schemes Received by CEA in India (From 1997-1998 to 1999-2000) (As on 31.03.2000)
  State-wise Rate of Return on SEBs Capital (without Subsidy) in India (1992-1993 to 1999-2000)
  Schemes given Techno-Economic Clearance by Central Electricity Authority (CEA) in India (1987 Onwards)
  Hydro Electric Stations/Units
  Manpower in State Electricity Boards
  Renovation and Modernisation/LEP Schemes for Power Stations in India (In 9th Plan)
  Renovation ModernisationandUpgradation of Hydro Schemes to be Undertaken/Completed in India (During Ninth Plan)
  Units Covered under Renovation and Modernisation Programme in India (Phase-II)
  State-wise Rating Score of Electricity Boards by CRISIL/ICRA in India

 
 

http://www.indiaurbanstat.com/power/26/stateelectricityboards/212/stats.aspx


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    The Government decided to take the disinvestment road by disposing off its stake in three PSU power sector companies. ... India accelerates divestment with NTPC stake sale. Photogallery ...
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We may have to return to the dark age once again as far as Electricity in Concered despite alterantive, green and Nuclear energy options so much so hyped. Power sector in Indian Economy gets topmost priority and happens to be decisive even in Indian Foreign policy after the Indo Us Nuclear deal was uto Opertaional. Nuclear Energy Disinvestment Bill and Privatisation of Power sector have hiked Electricity Prices rocket High. I pay Rs six per unit in a rented room and subsidy being deleted, I am afraid to be unable to afford Electricity in near Future. Rural Electrification couple with Green Revolution becomes useless as States eliminate Electricity subsidy rapidly.

Differences between the Shiromani Akali Dal and its alliance partner BJP
in Punjab over increase in power tariff refused to die down on Tuesday despite serious attempts by senior leaders from both parties to reach a solution.The issue of paying off enhanced power tariff from the state treasury has prompted state finance minister Manpreet Singh Badal to come out in the open against Punjab chief minister Parkash Singh Badal.
Contrary to speculation that Punjab might do away with free power to the farm sector in view of its poor fiscal state, the government is actually considering giving about 50% subsidy to the sector. Sources in the chief minister's office here told FE that ''the Electricity Act 2003 did not bar states from giving subsidy but only made it mandatory for the states to give advance quarterly subsidy on power tariff.'' Neighbouring Himachal gives a subsidy of 78 paisa a unit on power tariff, while Gujarat and Andhra give about 29 paisa subsidy on tariff and Haryana about 35 paisa.


My Village Basantipur and the surrounding areas, most of the Himalayan Terai in Nainital emerged from the Gim Corbett Fame Jungles inhibited by Buksha Tharu Tribals and Man eater tigers, were habitual to live with darkness.Basantipur was situated at a corner adjacent to Rai  Sikh Refugee Villages like Arjunpur, Amarpur and Raipur. Arjunpur was the village belonging to Baba Ganesha singh, who led the Dhimri Block Peasants Uprising with my father late Pulin Biswas, Chowdhari Nepal Singh, Harish Dhaundiyal and others.

 We cultivated the dense forest surviving the Calamities and Pandemics. We children shared the same School as well as our Childhood.

 We had to share the Water for Irrigation which remained the Bone of contention between two refugee Communities until Haripura Dam closed the routes of Natural Hill Streams flowing the region.

 Then our people tried very hard to get Electricity. Until 1970, there we had to see events of Bloody Struggles between the two refugee communities just for some water for our harvest wanting water.

Green revolution introduced by Pantnagar University, just Six KM away from Basantipur, changed our Cultivation as well as Harvesting as we adopted aliens SEEDs and Machines which demanded more water and more Chemicals for production.

 It was the same story all over Western UP and Punjab and Haryana.

Basantipur was Connected to electric line along with all the Ten Vilages of Vijay Nagar Gramsabha in 1969.

My Father led the Electrification Exercise. After so much so hard work we got electricity for which the pesants got loan to have Deep Tube Wells and Pum Sets.

I remember the incident as it involved ND Tiwari, then Finance Minister in Uttar Pradesh who switched on Light in Basantipur. Because I used to do all the drafting for our people, I was told to write the Welcome Letter, ABHINANDAN Patra for the Minister and I refused. The Village elders were annoyed as they did not know either Hindi or English. however they managed the crisis very well!

Today it is Netaji Jayanti. Basantipur celebrates the event as a state event. My Brother Padmalochan called me on my Cell Phone this morning when the function got started right from the Venue.

The Punjab State Electricity Regulatory Commission (PSERC) has asked for a Rs 2.40 paisa a unit tariff for the farm sector. The overwhelming view in the government is that it could subside tariff by 60 paisa a unit, after which the government's liability, which stood at about Rs 2,136 crore annually, will come down to about Rs 500 crore.


Punjab state principal secretary, power, recently wrote a letter to the finance department in this connection. However, the finance department is yet to respond.


Namita Sekhon, secretary, PSERC, told FE that ''the Regulatory Commission had sent a letter to the Punjab government on January 5'', that follows instructions from the Union government which wanted to know the criteria adopted to pay subsidy in lieu of free power to the farm sector and the poor. The commission had asked the government to inform it about the schedule being followed to pay the subsidy to Punjab State Electricity Board (PSEB).


Ms Sekhon said the commission would wait for the state government's response till February 5, after which the sectors being provided free power could be asked to pay for the power used.

As per rules, the state government is supposed to pay the subsidy in advance to provide free power to any sector or section of the society. In the absence or default or failure to pay the subsidy, the commission can order PSEB to charge the bill from those sections which were to get free power in view of the commitment made by the state government to pay subsidy in lieu of free power.


India attacks western 'hypocrisy' on energy

Updated on 20 January 2010

By Channel 4 News

While India plans to connect its entire population to electricity, the country's environment minister exclusively tells Faisal Islam the west should "stop preaching" over climate change.

In the coming years India plans to connect a further 500 million people into the electricity grid.

But as the energy-thirsty middle class grows and more power is required by India's growing export industry, India finds itself in a crisis over energy.

Faisal Islam travelled to West Bengal and spoke exclusively to India's Environment Minister Jairam Ramesh who criticised what he called the "constant preaching from Ed Miliband" about China and India.

Rich nations were, he said, in denial about the need for "fundamental lifestyle changes" in their "affluent societies".

He pointed to his British counterpart and fellow negotiator at the recent Copenhagen climate summit, saying: "I can tell you that Ed Miliband's carbon footprint is probably 20 times my carbon footprint".

"Indian emissions are survival emissions. In the west they are lifestyle emissions, so I would tell my environmentalist friends to change their lifestyles before they preach to us as to what our development strategy should be," said Mr Ramesh.

The minister ruled out hopes of a more formalised deal to build on the "disappointing" Copenhagen agreement, saying: "These are very difficult issues – because the western countries don't want to compromise on lifestyle and we cannot compromise on our developmental priorities. So I don't see how we break out of this logjam".

The intervention comes days ahead of a key meeting of the basic group of emerging countries (including China and India, as well as Brazil and South Africa) hosted by Mr Ramesh in New Delhi next week.

The meeting will see this vital economic bloc agree a common position ahead of a 31 January deadline to outline specific measures to fulfill the limited Copenhagen agreement.

He stressed that India was "very aggressively" committed to its own domestic climate plans but would not subject itself to external constraints. 

"Internationally legally binding commitments? No. Till such a time that the developed countries demonstrate a degree of seriousness to reduce their level of emissions."

Mr Ramesh spoke to Channel 4 News from the heart of India's Sunderbans mangrove forest and tiger reserve.

The series of islands in the Ganges delta is acutely exposed to rising sea levels. Already, four islands have been submerged by rising sea levels and the after-effects of a deadly cyclone.

But Mr Ramesh directly blamed the energy required to fuel European and north American lifestyles for such environmental vulnerabilities.

"This constant preaching from Ed Miliband, for example [about] India and China, he became an evangelist you know on India and China, but what about the responsibility of the Americans, the British and the Germans to change the manner of their lifestyles?

"I think it is hypocritical on the part of the western nations to deny that it is unsustainable lifestyles that are leading to global warming and thereby climate change and the impact that you are going to see in places like the Sunderbans."

He confirmed plans to connect one billion Indians into the electricity network in the coming years, and admitted that coal will fuel 50 per cent of India's rapidly accelerating power generation.

Despite the vulnerability of human lives and of the environment, India is proving immune to international pressure on carbon emissions.

In the very place where climate change could cause most damage to mankind, India seems clear: the climate change crisis is a matter for the west and its profligate lifestyles.

http://www.channel4.com/news/articles/world/asia_pacific/india+attacks+western+aposhypocrisyapos+on+energy/3509302

Haryana promotes energy conservation in farming

Preeti Parashar
Posted: Monday, Jan 18, 2010 at 2257 hrs IST
Updated: Monday, Jan 18, 2010 at 2257 hrs IST

Chandigarh: Farmers in Haryana are turning to energy conservation by shifting to ISI/star-rated pump sets in place of the traditional ones. The state government that has floated a scheme for energy conservation in agriculture is providing financial assistance at the rate of Rs 400 per horse power to farmers.

The subsidy can be availed on installation of new pump sets as well as replacing the old ones with ISI mark/or at least four star-rated pump sets in tube wells.

An official from the renewable energy department of Haryana told FE that up to March 2009 nearly 4,056 tube wells were upgraded by installing ISI pump sets under the scheme. Financial assistance of Rs 1.76 crore has been provided. "A provision of providing assistance of Rs 92.50 lakh has been made for the current fiscal year under the scheme," the official said. "Since majority of farmers use locally made pumps rather than ISI marked/star rated pump sets, they consume more electricity. But about 30-35% electricity could be saved by replacing these pump sets with ISI marked/star rated ones and by installing the optimum capacity pump sets."

He explained that 10-15% electricity could be saved if farmers install ISI marked reflex valve or replace steel pipe of rough surface with RPVC pipe. Using long bend in place of 90-degree sharp bend and by keeping the delivery pipe at a height of three feet from ground level also help save power.

Farmers had to bear additional costs to replace/repair burnout motors, which occurred frequently due to overloading of feeders, long length of undersized secondary lines and poor selection and installation of electrical motor pump sets. This also caused high line losses and large voltage drops. Farmers used to install motors of higher capacity for higher water flow rate that resulted in overloading of feeders. "But with farmers shifting to ISI/star-rated pump sets, such incidents have reduced," said the official.

The Bureau of Energy Efficiency has initiated an agricultural demand-side management programme in Haryana to upgrade efficiency of pump sets through the PPP mode in Kaithal and Kurukshetra districts. Schneider Electric Conzerv India and PricewaterhouseCoopers have been selected for providing consulting services for successful implementation of this programme.

More from Commodities

http://www.financialexpress.com/news/Haryana-promotes-energy-conservation-in-farming/568371/

Key Issues for Rural Electrification

 

Anil K. Rajvanshi, Director,

Nimbkar Agricultural Research Institute (NARI),

P.O. Box 44, PHALTAN-415523, Maharashtra, INDIA

e-mail : nariphaltan@sancharnet.in

 

It is a matter of shame for all of us that even 56 years after independence, 63% of all rural households in India do not have electricity and use kerosene for lighting. Even for those rural areas, which are electrified, there is a tremendous shortage of power supply. Thus it is not uncommon for these areas to have 10-15 hours of blackouts and brownouts every day. There is a shortfall of about 15-20,000 MW of electricity in the country and we require about 140,000 MW of additional capacity by 2010 with an estimated outlay of Rs. 5,50,000 crores. Because of tremendous shortage of electricity, industrial growth and general life in the country is seriously affected. Moreover with any problems in the national grid, rural areas are affected the most, since the State Electricity Boards (SEB) provide urban areas with electricity on priority basis.

However the recently enacted Electricity Act 2003, which allows for the first time in India a private utility to produce and distribute power, provides a glimmer of hope not only for the country but more so for the rural areas. Hence small rural private and cooperative power utilities can be empowered to quickly and efficiently supply electricity.

Work done at the Nimbkar Agricultural Research Institute in Phaltan, Maharashtra has shown that each Taluka in the country produces enough agricultural residues so that all its electricity demands can be met by using them in 10-20 MW biomass-based power plants. The NARI study also showed that besides providing power, the Taluka energy self-sufficiency plan could also create 30,000 jobs/year. With the new Electricity Act, Taluka energy self sufficiency can become a reality since the utility can produce and supply power to its customers without the need to go through SEBs. The Taluka utility company can also lease the existing transmission and distribution infrastructure of SEBs so that it need not invest in developing its own. This will also help the SEBs to get regular income from their infrastructure. NARI study also showed that Taluka energy program can produce Rs. 100-crores/year wealth for its inhabitants in terms of biomass production and setting up of new electricity-based industries. With about 3500 talukas in the country it is therefore possible to produce about Rs. 3,50,000 crores/year extra wealth through the Taluka program.

Recently the Prime Minister has set up the Rural Electricity Supply Technology (REST) mission in the Ministry of Power (MOP). It is hoped through this mission to electrify all villages by 2010. According to MOP officials funds of about Rs. 10-15,000 crores will be made available to the rural power utilities at 2-2.5% p.a. interest rate. With the new Electricity Act and this type of funding it becomes very attractive for microutilities to come up in rural areas. Thus it is envisaged that a small rural power cooperative can be set up to produce 200-500 KWe of power and supply all the electricity demands of one or two villages. Again this utility can lease the existing SEB power line infrastructure for its purposes. The state government can also explore the possibility of allowing SEBs to lease these lines and provide standby power to rural microutility at substantially lower rates so that the state's social obligations to rural areas is also met. NARI has recently suggested this concept to Maharashtra Electricity Regulatory Commission (MERC). It is also envisaged that electric cooperatives may function on the lines of TV cable operators in rural areas.

However for small power packs of 500 KWe and less to function smoothly in rural areas it is necessary that they be powered by fuel from locally available resources. This will make these microutilities green and will create wealth in rural areas in producing value-added item. Thus there is a need to do sophisticated R & D in producing biofuels from renewable energy sources like agriculture residues and crops specifically grown for them. These biofuels can easily power the existing diesel gensets. Development of liquid fuels like ethanol and biodiesel from multipurpose crops should be done so that the issue of food and fuel from the same piece of land is taken care of. NARI has done pioneering work in developing sweet sorghum for ethanol production. Sweet sorghum can provide food, fuel and fodder from the same piece of land and requires much less water than sugarcane. Thus the Government of India should extensively fund the R & D program on biofuels.

Finally for the rural electricity supply mission to succeed it is necessary that a very close cooperation between corporate sector, government and NGOs is needed. The corporate sector can provide the necessary technological and managerial support, NGOs can create the necessary trust in such utilities and Government of India can help provide soft financing through its many rural development programs. An energy self sufficient and hence prosperous rural India will be the first step in making us a developed nation.

 http://pune.sancharnet.in/nariphaltan/ruralelec.htm


Record crop gives M'rashtra sugar mills the glut feel

Sanjay Jog
Posted: Monday, May 26, 2008 at 2038 hrs IST
Updated: Monday, May 26, 2008 at 2038 hrs IST
   

Mumbai: Maharashtra's crisis-ridden sugar industry is worried about a problem of plenty, as it expects a record production of 91 lakh tonne in the ongoing crushing season. This is equivalent to last year's production.

The sugar industry expects crushing to be done till June. Crushing was delayed last year because of extended monsoon. So, the industry has been cautious this time.

Nearly 172 sugar factories-- 23 of them private units—are busy crushing sugarcane this season. Officials at the state federation of cooperative sugar factories told FE. ''So far 88 lakh tonne sugar has been produced and it is estimated that by the end of the prolonged crushing season, the state will have a sugar production of 91 lakh tonne. It is expected that the sugar industry will be able to export 20 lakh tonne, which includes both raw and white sugar against the total target of 30 lakh tonne. This sugar was produced in last year's crushing season."

Besides, the sugar industry claims that it would have to face hardship after the Centre creates a buffer stock of 50 lakh tonne at the national level.

Sources said there is also an increase in recovery to more than 9%, which is factored in while fixing the minimum support price. A large number of sugar co-operatives enjoys a recovery rate of over 12% and in some cases it has crossed 13%.

The Congress-led government in Maharashtra, in a bid to keep the politically influential co-operatives happy ahead of next year's assembly elections, has announced a slew of sops. Sugar units, which have their crushing season extended beyond 160 days, would be entitled to a grant if the recovery rate falls. For every 1% fall, the cooperatives would get grant of Rs 130 a quintal. Besides, sugar units would be given a sugar transportation grant of Rs 2 per tonne. The government would give counter-guarantee to 25 units that have received medium-term loan based on excise duty under a central government scheme.

Moreover, if sugar units are unable to complete crushing in the prolonged season, they would get an assistance of Rs 25,000 per hectare. However, if sugar units use the uncrushed sugarcane during the crushing season of 2008-09, they would have to repay the grant to the government.

http://www.financialexpress.com/news/record-crop-gives-mrashtra-sugar-mills-the-glut-feel/314325/



Shankar Acharya: Ten myths of Indian economic policy
it is hard to dispute the potency of myths in economic policy-making
Shankar Acharya / New Delhi January 14, 2010, 0:52 IST

Economic policy in India, and perhaps in many other countries, is constrained by powerful prevailing myths and prejudices. Sometimes these myths simply reflect lazy thinking or an apparent immunity to facts. Sometimes they are shored up by strong vested interests. Sometimes all three. Whatever the reason, it is hard to dispute the potency of myths in economic policy-making. Here are my ten favourites, some old, some new.

Higher minimum support prices (MSPs) for foodgrains are good for farmers. Not so. Yes, they are good for a powerful minority of farmers who have sizable marketable surpluses and ready access to government procurement programmes. But the majority of Indian farmers (especially poorer marginal farmers) are hurt by higher food prices for the simple reason that they are net buyers of foodgrains. And when you add in tens of millions of landless labourers, it is quite clear that inexorably higher MSPs for wheat and rice are often quite damaging for rural households.

The move to a Goods and Services Tax (GST) will reduce the burden of taxation. I hope not! Or the already massive fiscal deficit will soar higher. The more thoughtful government pronouncements do speak of a reform which is revenue-neutral or even revenue-enhancing. But there are many who tout the illusory prospect of a lower tax burden. The underlying logic of this reform is not tax relief but rather relief from distorted economic incentives and avoidable hassles and uncertainties, which are embedded in the current system of multiple indirect taxes.

There is no role for monetary policy when inflation is driven by supply shortfalls. Not quite. The truth is that the extent and duration of an inflationary bout triggered by a supply shock (such as a drought) do depend on the degree of accommodation offered by monetary policy. If liquidity is excessive, the inflationary consequences will be greater; if liquidity is tighter, price increases will be less. Of course, the act of tightening monetary policy can reduce output expansion. Hence the trade-off between inflation and growth is a live issue even when the initial shock is from the supply side. And then there is the problem of expectations: if monetary policy stands pat in the face of supply-induced inflation, then inflationary expectations can fuel the fire.

Our labour laws protect labour. Quite the opposite. Present laws over-protect a tiny minority (about 5 per cent of India's 450 million plus labour force, not counting government employees) at the expense of the vast majority of workers. By making it extremely difficult to retrench workers in the organised sector, our present laws massively discourage the employment of new workers in organised enterprises. In effect, our laws are very anti-employment and lead to huge underutilisation and "casualisation"of our most abundant resource, low-skill labour.

The exchange rate only matters to exporters. This is a common misperception, even among trained economists. Actually, the exchange rate is the single most important price in the economy, which powerfully influences the relative profitability of all tradable goods and services versus non-tradables (like haircuts in Delhi or restaurant meals in Mumbai). Thus, an appreciation of the rupee (versus foreign currencies) not only makes exports less profitable but also hurts an even greater range of import substitutes, that is goods and services produced for our home market in competition with imports from abroad.

Reducing fiscal deficits hurts growth. In the present "stimulated" environment, there is much anxiety that a reduction in the current record high fiscal deficits (over 10 per cent of GDP) will hurt growth. The massive deficits of 2008-09 and 2009-10 were perhaps justifiable in the face of contractionary effects of the global crisis. But these deficits are neither sustainable nor desirable. Actually, the Indian economy has grown fastest during periods when deficits were being reduced (1992-97 and 2003-08) and slower when deficits were expanding (1997-2002). This is because less government borrowing usually facilitates more productive private investment.

Subsidies on food, fuel and electricity mainly help the poor. Not so. The food subsidy mainly helps better-off farmers and consumers in only four or five states where the public distribution system has effective coverage. The great majority of India's poor do not have effective access to subsidised foodgrains. Many studies have shown that the huge subsidies on petrol, diesel, LPG and kerosene mainly accrue to better-off urban households (all those fuel-guzzling cars and SUVs). The large state subsidies on electricity for agriculture have helped to thoroughly undermine the development of a viable electricity distribution network and kept our villages in darkness. In contrast, note how the rapid spread of mobile telephony did not need subsidies.

Foreign capital inflows are always good for our economy. Twenty years ago, most Indians believed the opposite, that all private foreign capital inflows were bad and somehow designed to impoverish us. In the last two decades, the conventional "wisdom" has swung to the opposite extreme. In fact, as both the Asian crisis of 1997-98 and the global financial crisis of 2008-09 have amply demonstrated, foreign capital inflows into a developing country can be a mixed blessing. Specifically, for India, the capital inflow surge of 2005-08 posed serious problems of an overly appreciated exchange rate, excess domestic liquidity and an asset price boom. The more thoughtful of our policy-makers, including then RBI Governor YV Reddy, grasped the need for capital account management in such situations.

Private provision of infrastructure can effectively substitute for government. Private public partnerships (PPPs) are the ruling mantra of the day. Since the government has failed badly in providing adequate power, roads, ports, water, sanitation and so forth, we must turn to PPPs for our deliverance. Or so runs the new myth. Of course, there is a big and useful part that the private sector can play in building up our infrastructure. But the experience from all over the world suggests that the government must continue to play the major role in this area. In particular, PPPs cannot substitute for effective governance in infrastructure provision. Indeed, there is a growing body of experience which suggests that the governance requirements of PPPs are pretty high, if we are not to fall prey to the rip-offs of crony capitalism.

The trader (or middle man) is at the root of many of our economic problems. This is one of our really hoary and hairy myths. Whenever the rate of inflation rises, governments blame rapacious traders and deploy regulations to control their stocking and other activities. The truth is traders are essential to the efficient functioning of an economy. Commerce is the lifeblood of economic activity. Of course, individual traders exploit whatever monopoly power circumstances grant them to maximise their profits. But the problem does not lie with traders. It rests with the circumstances and policies which nurture national or local monopolies and oligopolies. The best antidote to monopolistic exploitation is competition. And that is best nurtured through better connectivity (transport and communication) and reduction of regulations and levies, which fragment markets and raise barriers to competition, whether from abroad or at home.

Unfortunately, myths have of a life of their own.

The author is Honorary Professor at ICRIER and former Chief Economic Adviser to the Government of India. Views expressed are personal.





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Electricity sector in India

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The electricity sector in India is predominantly controlled by the Government of India's public sector undertakings (PSUs). Major PSUs involved in the generation of electricity include National Thermal Power Corporation (NTPC), National Hydroelectric Power Corporation (NHPC) and Nuclear Power Corporation of India (NPCI). Besides PSUs, several state-level corporations, such as Maharashtra State Electricity Board (MSEB), are also involved in the generation and intra-state distribution of electricity. The PowerGrid Corporation of India is responsible for the inter-state transmission of electricity and the development of national grid.

The Ministry of Power is the apex body responsible for the development of electrical energy in India. This ministry started functioning independently from 2 July, 1992; earlier, it was known as the Ministry of Energy. The Union Minister of Power at present is Sushilkumar Shinde of the Congress Party who took charge of the ministry on the 28th of May, 2009.

India is world's 6th largest energy consumer, accounting for 3.4% of global energy consumption. Due to India's economic rise, the demand for energy has grown at an average of 3.6% per annum over the past 30 years.[1] In March 2009, the installed power generation capacity of India stood at 147,000 MW[2] while the per capita power consumption stood at 612 kWH.[3] The country's annual power production increased from about 190 billion kWH in 1986 to more than 680 billion kWH in 2006.[4] The Indian government has set an ambitious target to add approximately 78,000 MW of installed generation capacity by 2012.[5] The total demand for electricity in India is expected to cross 950,000 MW by 2030.[6]

About 75% of the electricity consumed in India is generated by thermal power plants, 21% by hydroelectric power plants and 4% by nuclear power plants.[7] More than 50% of India's commercial energy demand is met through the country's vast coal reserves.[1] The country has also invested heavily in recent years on renewable sources of energy such as wind energy.[8] As of 2008, India's installed wind power generation capacity stood at 9,655 MW.[9] Additionally, India has committed massive amount of funds for the construction of various nuclear reactors which would generate at least 30,000 MW.[10] In July 2009, India unveiled a $19 billion plan to produce 20,000 MW of solar power by 2020.[11]

Electricity losses in India during transmission and distribution are extremely high and vary between 30 to 45%.[12] In 2004-05, electricity demand outstripped supply by 7-11%.[13] Due to shortage of electricity, power cuts are common throughout India and this has adversely effected the country's economic growth.[14][15] Theft of electricity, common in most parts of urban India, amounts to 1.5% of India's GDP.[16][17] Despite an ambitious rural electrification program,[18] some 400 million Indians lose electricity access during blackouts.[19] While 80 percent of Indian villages have at least an electricity line, just 44 percent of rural households have access to electricity.[17] According to a sample of 97,882 households in 2002, electricity was the main source of lighting for 53% of rural households compared to 36% in 1993.[20] Multi Commodity Exchange has sought permission to offer electricity future markets.[21]

Contents

[hide]

[edit] Generation

Grand Total Installed Capacity is 147,402.81 MW[22].

[edit] Thermal Power

Current installed capacity of Thermal Power (as of 12/2008) is 93,392.64 MW which is 63.3% of total installed capacity.

  • Current installed base of Coal Based Thermal Power is 77,458.88 MW which comes to 53.3% of total installed base.
  • Current installed base of Gas Based Thermal Power is 14,734.01 MW which is 10.5% of total installed base.
  • Current installed base of Oil Based Thermal Power is 1,199.75 MW which is 0.9% of total installed base.

The state of Maharashtra is the largest producer of thermal power in the country.

[edit] Hydro Power

India was one of the pioneering states in establishing hydro-electric power plants. The power plant at Darjeeling and Shimsha (Shivanasamudra) was established in 1898 and 1902 respectively and is one of the first in Asia. The installed capacity as of 2008 was approximately 36647.76[23]. The public sector has a predominant share of 97% in this sector.[24]

[edit] Nuclear Power

Currently, seventeen nuclear power reactors produce 4,120.00 MW (2.9% of total installed base).

[edit] Renewable Power

Current installed base of Renewable energy is 13,242.41 MW which is 7.7% of total installed base with the southern state of Tamil Nadu contributing nearly a third of it (4379.64 MW) largely through wind power.[22]

[edit] Transmission

A power transmission cable operated by BEST in Mumbai, India.

Transmission of electricity is defined as bulk transfer of power over a long distance at high voltage, generally of 132kV and above. In India bulk transmission has increased from 3,708ckm in 1950 to more than 165,000ckm today(as stated by Power Grid Coroporation fo India). The entire country has been divided into five regions for transmission systems, namely, Northern Region, North Eastern Region, Eastern Region, Southern Region and Western Region. The Interconnected transmission system within each region is also called the regional grid.

The transmission system planning in the country, in the past, had traditionally been linked to generation projects as part of the evacuation system. Ability of the power system to safely withstand a contingency without generation rescheduling or load-shedding was the main criteria for planning the transmission system. However, due to various reasons such as spatial development of load in the network, non-commissioning of load centre generating units originally planned and deficit in reactive compensation, certain pockets in the power system could not safely operate even under normal conditions. This had necessitated backing down of generation and operating at a lower load generation balance in the past. Transmission planning has therefore moved away from the earlier generation evacuation system planning to integrate system planning.

While the predominant technology for electricity transmission and distribution has been Alternating Current (AC) technology, High Voltage Direct Current (HVDC) technology has also been used for interconnection of all regional grids across the country and for bulk transmission of power over long distances.

Certain provisions in the Electricity Act 2003 such as open access to the transmission and distribution network, recognition of power trading as a distinct activity, the liberal definition of a captive generating plant and provision for supply in rural areas are expected to introduce and encourage competition in the electricity sector. It is expected that all the above measures on the generation, transmission and distribution front would result in formation of a robust electricity grid in the country.[22]

[edit] Distribution

The total installed generating capacity in the country is over 147,000MW and the total number of consumers is over 144 million. Apart from an extensive transmission system network at 500kV HVDC, 400kV, 220kV, 132kV and 66kV which has developed to transmit the power from generating station to the grid substations, a vast network of sub transmission in distribution system has also come up for utilisation of the power by the ultimate consumers.

However, due to lack of adequate investment on T&D works, the T&D losses have been consistently on higher side, and reached to the level of 32.86% in the year 2000-01.The reduction of these losses was essential to bring economic viability to the State Utilities.

As the T&D loss was not able to capture all the losses in the net work, concept of Aggregate Technical and Commercial (AT&C) loss was introduced. AT&C loss captures technical as well as commercial losses in the network and is a true indicator of total losses in the system.

High technical losses in the system are primarily due to inadequate investments over the years for system improvement works, which has resulted in unplanned extensions of the distribution lines, overloading of the system elements like transformers and conductors, and lack of adequate reactive power support.

The commercial losses are mainly due to low metering efficiency, theft & pilferages. This may be eliminated by improving metering efficiency, proper energy accounting & auditing and improved billing & collection efficiency. Fixing of accountability of the personnel / feeder managers may help considerably in reduction of AT&C loss.

With the initiative of the Government of India and of the States, the Accelerated Power Development & Reform Programme (APDRP) was launched in 2001, for the strengthening of Sub – Transmission and Distribution network and reduction in AT&C losses.

The main objective of the programme was to bring Aggregate Technical & Commercial (AT&C) losses below 15% in five years in urban and in high-density areas. The programme, along with other initiatives of the Government of India and of the States, has led to reduction in the overall AT&C loss from 38.86% in 2001-02 to 34.54% in 2005-06. The commercial loss of the State Power Utilities reduced significantly during this period from Rs. 29331 Crore to Rs. 19546 Crore. The loss as percentage of turnover was reduced from 33% in 2000-01 to 16.60% in 2005-06.

The APDRP programme is being restructured by the Government of India, so that the desired level of 15% AT&C loss could be achieved by the end of 11th plan.[22]

[edit] Power for ALL by 2012

The Government of India has an ambitious mission of POWER FOR ALL BY 2012. This mission would require that the installed generation capacity should be at least 200,000 MW by 2012 from the present level of 144,564.97 MW. Power requirement will double by 2020 to 400,000MW.[25]

[edit] Objectives

  • Sufficient power to achieve GDP growth rate of 8%
  • Reliable power
  • Quality power
  • Optimum power cost
  • Commercial viability of power industry
  • Power for all

[edit] Strategies

  • Power Generation Strategy with focus on low cost generation, optimization of capacity utilization, controlling the input cost, optimisation of fuel mix, Technology upgradation and utilization of Non Conventional energy sources
  • Transmission Strategy with focus on development of National Grid including Interstate connections, Technology upgradation & optimization of transmission cost.
  • Distribution strategy to achieve Distribution Reforms with focus on System upgradation, loss reduction, theft control, consumer service orientation, quality power supply commercialization, Decentralized distributed generation and supply for rural areas.
  • Regulation Strategy aimed at protecting Consumer interests and making the sector commercially viable.
  • Financing Strategy to generate resources for required growth of the power sector.
  • Conservation Strategy to optimise the utilization of electricity with focus on Demand Side management, Load management and Technology upgradation to provide energy efficient equipment / gadgets.
  • Communication Strategy for political consensus with media support to enhance the genera; public awareness.

[edit] Rural electrification

Jharkhand, Bihar, Uttar Pradesh, Orissa, Uttranchal, Madhya Pradesh etc are some of the states where significant number (more than 10%) of villages are yet to be electrified.

  • Number of Villages (1991 Census) - 593,732
  • Villages Electrified (30 May 2006) - 488,173
  • Village level Electrification % - 82.2%

[edit] Subsidies

Several state governments in India provide electricity at subsidised rates or even free to some sections. This includes for use in agriculture and for consumption by backward classes. The subsidies are mainly as cross-subsidisation, with the other users such as industries and private consumers paying the deficit caused by the subsidised charges collected. Such measures have resulted in many of the state electricity boards becoming financially weak.

At present (2009), the price per unit of electricity in India is about Rs. 4 (8 US cents) for domestic consumers, and Rs. 9 for the commercial supply.

[edit] See also

[edit] Notes

  1. ^ a b World Coal Institute - India
  2. ^ http://www.livemint.com/2009/03/04222335/5-years-on-plans-fail-to-add.html
  3. ^ Key World Energy Statistics-2007
  4. ^ Energy Information Administration - India
  5. ^ Indian Electricity: Miles to go
  6. ^ India envisages about 950,000 MW power requirement by 2030
  7. ^ Electricity Outlook India: 2008
  8. ^ Winds of change come to country plagued by power blackouts
  9. ^ World Wind Energy Association (February 2009). "World Wind Energy Report 2008". Report. http://www.wwindea.org/home/images/stories/worldwindenergyreport2008_s.pdf. Retrieved 16-March-2009. 
  10. ^ India commits Rs 180k cr to nuclear trade
  11. ^ India to unveil 20GW solar target under climate plan, Reuters, Jul 28, 2009
  12. ^ Indian prime minister sets 2012 as deadline to end power shortage in the country
  13. ^ http://www.indiacore.com/power.html
  14. ^ Electricity and power shortage holding India back
  15. ^ India Faulted for Failure to Improve Power Supply
  16. ^ "India struggles with power theft". BBC. 15 March 2006. http://news.bbc.co.uk/2/hi/business/4802248.stm. Retrieved 3 January 2010. 
  17. ^ a b "Reforming the Power Sector: Controlling Electricity Theft and Improving Revenue" (PDF). The World Bank. http://rru.worldbank.org/documents/publicpolicyjournal/272bhatia_Gulati.pdf. 
  18. ^ Rural electrification in India
  19. ^ http://dotearth.blogs.nytimes.com/2008/04/09/money-for-indias-ultra-mega-coal-plants-approved/
  20. ^ "Housing condition in India: Household amenities and other characteristics (July - September 2002)". Government of India. http://www.mospi.nic.in/nss_58round_press_note_6june05.htm. 
  21. ^ "MCX move to launch electricity future faces legal hurdle". The Financial Express. http://www.financialexpress.com/news/mcx-move-to-launch-electricity-future-faces-legal-hurdle/401592/. 
  22. ^ a b c d Central Electric Authority, Ministry of Power
  23. ^ http://www.cea.nic.in/power_sec_reports/executive_summary/2008_12/index.htm
  24. ^ Hydropower Development in India: A Sector Assessment
  25. ^ Gujarat tops in rural electrification; several states falter

Expect PSU selloff every three weeks

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Market extends losses for the fourth day; volatility to the fore

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India's largest power generation firm by total capacity NTPC was down 0.74%. The company FPO remains open between 3 and 5 February 2010. ...

PSU shares regain fancy

BloombergUTV - ‎Jan 22, 2010‎
India's largest power generation firm by total capacity NTPC was down 0.36%. The company FPO remains open between 3 and 5 February 2010. ...

'PSUs as an asset class is good investment'

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We talk about disinvestment as a basis for re-rating these stocks. But where is the progress? Even if we assume the government will divest, what difference ...

Indo-Malaysian bilateral ties set to reach decisive turning point: Malaysian PM

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Smartinvestor Special: PSU stocks as an investment theme

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Electrification

Click Here for Specimen Table  
Figures at All-India / State level : (Currently showing India with State Level consolidated figures) Andhra Pradesh | Arunachal Pradesh | Assam | Bihar | Chhattisgarh | Goa | Gujarat | Haryana | Himachal Pradesh | Jammu & Kashmir | Jharkhand | Karnataka | Kerala | Madhya Pradesh | Maharashtra | Manipur | Meghalaya | Mizoram | Nagaland | Orissa | Punjab | Rajasthan | Tamil Nadu | Uttar Pradesh | Uttaranchal | West Bengal |

(Data table headings are shown Year-wise in descending order)


  State-wise Number of Unelectrified Villages in India (As on 29.02.2008)
  Performance of Rural Electrification Corporation in India (1997-1998 to 2006-2007 and 2008-2009)
  Selected State-wise Number of Below Poverty Line (BPL)/Kutir Jyoti Connections and Funds Released under Kutir Jyoti/BPL Household Electrification Programme in India (2004-2005 and 2005-2006)
  Selected State-wise Number of Kutir Jyoti/BPL Connections Released under Kutir Jyoti/BPL Household Electrification Programme in India (As on 28.07.2006)
  Selected State-wise Status of Franchisee Development in India (July, 2006)
  State-wise of Un-Electrified BPL Households on Basis of DPRS Received in India (Till 21.7.2006)
  Selected State-wise Disbursement of Grant for Electrification of Villages under Kutir Jyoti (KJ) and Below Poverty Line (BPL) in India (2004-2005)
  Selected State-wise Disbursements of Grant under KJ/BPL/PMGY in India (2004-2005)
  Selected State-wise Electrification of BPL Households Covered in Projects Sanctioned by REC Under "Accelerated Electrification of One Lakh Villages and One Crore Households" Programme in India (As on 10.3.2005)
  State-wise Installed Capacity, Gross Generation, Consumption and Number of Consumers of Power in India (2003-2004)
  State-wise Remote Unelectrified Villages Identified (Tentative), Electrified and under Implementation in India (As on 31.03.2004)
  Selected State-wise Disbursement of Grant for Electrification of Villages under Kutir Jyoti (KJ) and Minimum Need Programme (MNP) in India (2002-2003)
  Selected State-wise Target and Achievement for Pumpsets Energised under 20 Point Programme in India (September, 2003)
  Selected State-wise Target and Achievement for Villages Electrifeation under Twenty-Point Programme in India (September, 2003)
  State-wise Allocation, Programme Accepted Under Kutir Jyoti Programme in India (2002-2003)
  State-wise Status of Unelectrified Villages in India (As on 31.3.2003)
  State-wise Targets and Progress of Pumpset Energisation in India (1997-1998 to 2001-2002)
  State-wise Villages Unelectrified in India (As on 1.3.2000 and 31.8.2002)
  Selected State-wise Number of Inhabited/Unelectrified Villages in India (As per 2001 Census)
  State-wise Electrification of Dalit Basti in India (As on 30.09.2001)
  State-wise Financial Assistance Provided by Rural Electrification Corporation in India (During 1997-1998 to 2000-2001)
  State-wise Loan Released by Ministry of Finance Under Rural Electrification Programme in India (During 2000-2001)
  State-wise Sanctions and Disbursement under REC Financed Projects in India (During 2000-2001)
  State-wise Electricity Statistics in India (1999-2000)
  Region/State-wise Irrigation Pumpsets Energised and Electricity Consumption in Agriculture Sector of India (1996-1997 and 1997-1998)
  State-wise Per Thousand Distribution of Dwelling Units Electrified and Not Electrified by Type of Wiring for Rural Areas in India (January-June 1993)
  State-wise Per Thousand Distribution of Dwelling Units Electrified and Not Electrified by Type of Wiring for Urban Areas in India (January-June 1993)
  Pumpset/Tubewells Enrgisation
  Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY)
  State-wise Hydro and Thermal Power Generation Project in India (During 9th Five Year Plan)
  Towns and Village Electrification
  Village Electrification
  State-wise Disbursement of Funds under REC Programmes including Pumpset Energisation in India (During VIIIth Plan Period)
  State-wise Modernisation of Thermal Power Plants and Summery of their Life Extension (LE) Works in India
  State-wise Progress of Pumpset Energisation Plan under REC Programmes in India (During Eight Five Year Plan)

Rural electrification

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Rural electrification is the process of bringing electrical power to rural and remote areas. Electricity is used not only for lighting and household purposes, but it also allows for mechanization of many farming operations, such as threshing, milking, and hoisting grain for storage; in areas facing labor shortages, this allows for greater productivity at reduced cost. The most famous[citation needed] such program was the New Deal's Rural Electrification Administration in the United States, which pioneered many of the themes still practiced in other countries. Worldwide more than 3.6 billion people do not have access to electricity, of which 83 % live in rural areas. In Sub Saharan Africa only 9 % of the rural population has access to electricity.

Contents

[hide]

[edit] Benefits

In impoverished and undeveloped areas, small amounts of electricity can free large amounts of human time and labor. In the poorest areas, people carry water and fuel by hand, their food storage may be limited, and their activity is limited to daylight hours.[citation needed]

Adding electric-powered wells for clean water can prevent many water-borne diseases, e.g. dysintery, by reducing or eliminating direct contact between people (hands) and the water supply. Refrigerators increase the time that food can be stored, potentially reducing hunger, while evening lighting can lengthen a community's daylight hours.[citation needed]

[edit] Drawbacks

Depending on the source, rural electrification (and electricity in general) can bring problems as well as solutions. New power plants may be built, or existing plant's generation capacity increased to meet the demands of the new [rural] electrical users. A government may be inclined to use the cheapest generation source, which might be the most polluting, and locate the power plant next vulnerable minorities or rural areas.

Many farmers, cooperatives and independent organisations contest that the Rural Utility Service, which is responsible for providing loans and subsidies for electric utilities who build in rural areas is outdated and is inhibiting free-market competition. Over 99% of rural farms have access to electricity, but many may benefit more from utility competition and renewables[citation needed].

[edit] Technology

One of the least expensive, most reliable, and best proven mains electricity distribution systems for rural electrification is single wire earth return. This system is widely used in countries such as Australia with very low populations densities. Also, there are some geographical requirements necessary for its use. There are many instance where these two systems are used together in the same system to serve remote and less remote rural populations.

Since modern power distribution networks can cheaply include optic fibres in the centre of one of the wires, telephone and internet service may become available with rural electrification.

Locally generated renewable energy is an efficient technology, particularly compared to electrification with diesel generators. Higher installations costs are coupled with significantly lower running costs. Hybrid systems (renewables combined with diesel generators) are a widely acknowledged technology for rural electrification in developing countries.

[edit] Continental and National initiatives

[edit] China

China launched the China Township Electrification Program in 2001 to provide renewable electricity to 1,000 townships, one of the largest such programs in the world. This is being followed by the China Village Electrification Program, also using renewable energy, aimed at electrification of a further 3.5 million households in 10,000 villages by 2010, to be followed by full rural electrification by 2015.[1]

[edit] India

400 million Indians have no access to electricity.[2]

The problem is not one of distribution, but of provision. Many people attempt to steal electric power. The electric company then responds with punitive "tampering tariffs" that require payment for all the electricity that the fraudulent connections and meters might have stolen. These very high tariffs are unaffordable, resisted by all but the wealthiest users. The result is that the underfunded electric power company reduces service to the amount of electricity it can afford to produce. The electric companies therefore also prefer to serve large institutional customers that pay their bills.

Developments on cheap solar technology is considered as a potential alternative that allows an electricity infrastructure comprising of a network of local-grid clusters with distributed electricity generation. That could allow bypassing, or at least relieving the need of installing expensive, and lossy, long-distance centralised power delivery systems and yet bring cheap electricity to the masses.

The government has proposed legislation to have village leaders operate local generators run from biomass (see links). Locally-controlled generation is preferable to distant generation because the fuel, billing and controls for the generator will then be controlled by the villagers themselves, and they are thought more likely to come to an equitable arrangement among themselves.

However, there is doubt that villagers can run such an installation.

One proposal for such an installation would be to ferment the biomass, and use the resulting gas to run a clean diesel engine producing about 500 kW. Directly burning the biomass would require that it be dried from 50% water content to 10-15%, and this uses energy. In contrast, fermenting biogases is well-established technology, and produces fuel directly usable in a diesel engine. Also, since the fuel is almost pure methane, the diesel's exhaust would itself be clean drinking water, and the heat of the exhaust could be used to distill more clean drinking water.[2]

[edit] European Union

In Europe exists the Alliance for Rural Electrification (ARE), an international non-profit organization founded in 2006 [3]. ARE promotes the use of renewable energy in developing countries. ARE is partner of the United Nations Global Compact and the European Union Sustainable Energy Campaign.

[edit] Ireland

During the 1930s most towns in Ireland were connected to the grid but the outbreak of World War II in Europe lead to shortages of fuel and materials which brought the process to a virtual halt until the early 1950s when the Rural Electrification scheme gradually brought electric power to the countryside a process that was completed on the mainland in 1973 (but it wasn't until 2003 that the last of the inhabited offshore islands were fully connected). Currently the Rural Electrification scheme continues but is primarily concerned with upgrading the quality of the network (voltage fluctuations are still a problem in parts of Ireland -particularly in rural areas) and making three phase supplies available to larger farms and rural businesses requiring it.

[edit] United States

In 1892, Guy Beardslee, the original owner of Beardslee Castle, was paid $40,000 to provide hydroelectric power to East Creek in New York.

Despite widespread electricity in cities, by the 1920's electricity was not delivered by power companies to rural areas because of the general belief that the infrastructure costs would not be recouped. In sparsely-populated farmland, there were far fewer houses per mile of installed electric lines. A Minnesota state committee was organized to carry out a study of the costs and benefits of rural electrification. [3] The University of Minnesota Department of Biosystems and Agricultural Engineering, working jointly with NSP (now Xcel Energy), conducted an experiment, providing electricity to nine farms in the Red Wing area. Electricity was first delivered on December 24, 1923.[4] The "Red Wing Project" was successful- the power company and the University concluded that rural electrification was economically feasible. The results of the report were influential in the National government's decision to support rural electrification.

Before 1936, a small but growing number of farms installed small wind-electric plants. These generally used a 40V DC generator to charge batteries in the barn or the basement of the farmhouse. This was enough to provide lighting, washing machines and some limited well-pumping or refrigeration. Wind-electric plants were used mostly on the great plains, which have usable winds on most days.

Of the 6.3 million farms in the United States in January 1925, only 3.2 million were receiving centralized electric services.[4] The Rural Electrification Administration (REA) was created by executive order as an independent federal bureau in 1935, authorized by the United States Congress in the 1936 Rural Electrification Act, and later in 1939, reorganized as a division of the U.S. Dept. of Agriculture. It was charged with administering loan programs for electrification and telephone service in rural areas. Between 1935 and 1939 – or the first 4 ½ years after REA's establishment, the number of farms using electric services more than doubled.[4]

The REA undertook to provide farms with inexpensive electric lighting and power. To implement those goals the administration made long-term, self-liquidating loans to state and local governments, to farmers' cooperatives, and to nonprofit organizations; no loans were made directly to consumers. In 1949 the REA was authorized to make loans for telephone improvements; in 1988, REA was permitted to give interest-free loans for job creation and rural electric systems. By the early 1970s about 98% of all farms in the United States had electric service, a demonstration of REA's success. The administration was abolished in 1994 and its functions assumed by the Rural Utilities Service. Also, the Tennessee Valley Authority is an agency involved in rural electrification.

[edit] In the arts

[edit] Musicals

In 2005, a musical about the rural electrification of Ireland, The Wiremen, written by composer Shay Healy, directed by Matt Ryan with musical direction by Julian Kelly, and produced by John McColgan/Moya Doherty of Riverdance fame, ran for six weeks at The Gaiety Theatre, Dublin. Set in the fictional village of Kilnacree in North Mayo, the story had the drama of a young local farmer resisting progress, set against the comedy and upheaval occasioned by the arrival of The Wiremen, in this case seven Dubliners, known as The Lightning Jacks.

[edit] Films

The movie O Brother, Where Art Thou? contains a reference to rural electrification in the end, when the main character Everett (George Clooney) talks about how life will change with the introduction of a hydroelectric dam.

The 1937 movie Slim (based on the novel by William Wister Haines) starring Henry Fonda salutes the linemen who wired the remote parts of the United States for electric power during the 1930s and realistically details many of the dangers they faced climbing towers and working on energized high-voltage equipment. The movie is shown occasionally on Turner Classic Movies and is said to have been one of Henry Fonda's favorite roles. The beginning of the film contains a montage tribute to the men who pioneered the electric power industry and contains scenes from REA documentaries describing the electrification of America.

[edit] See also

[edit] References

  1. ^ Renewables Global Status Report 2006 Update, REN21, published 2006, accessed 2007-05-16
  2. ^ [1]
  3. ^ Alliance for Rural Electrification
  4. ^ a b Beall, Robert T. (1940). "Rural Electrification." United States Yearbook of Agriculture. Washington, DC: United States Department of Agriculture. p. 790-809. Retrieved December 30, 2008.

[edit] External links

Categories: Rural electrification

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July meet that set PM's mind

Washington, Jan. 22: The decision to appoint Shiv Shankar Menon as national security adviser was taken in principle by the Prime Minister in the last week of July 2009, notwithstanding ill-informed speculation about other contenders right until yesterday's announcement of M.K. Narayanan's successor.

Manmohan Singh's resolve to bring Menon into his office (PMO) was firmed up following a meeting that took place on a day the Prime Minister was down but not out as the result of overwhelming political and bureaucratic opposition to his Sharm-el-Sheikh initiative with Pakistan on July 16.

Menon, only a few days away from retirement as foreign secretary, was not only down but also out.

He had taken the blame for the Sharm-el-Sheikh fiasco where Singh and Pakistan's Prime Minister Syed Yousaf Raza Gilani had agreed to delink action on terrorism from the Indo-Pakistan dialogue and allegedly conceded ground to Pakistan on its complaints about an Indian subversive role in Balochistan.

Consequently, work on a new office space for Menon was ordered to be stopped and a decision to bring him into the PMO as a special envoy was put on hold.

Singh, who tends to lapse into moods at the slightest of setbacks, was upset that he was not getting the political backing from the Congress he had hoped for after Sharm-el-Sheikh.

For all that, Singh was absolutely convinced that he had done the right thing at his meeting with Gilani and realised that he would now have to bide his time to resume the initiative with Pakistan.

It was against this backdrop that a crucial meeting was called to take stock of the fallout from Sharm-el-Sheikh.

At this meeting, the normally unflappable Menon let fly his frustrations and disappointments during the two years and 10 months that he had been foreign secretary, according to a cabinet minister and a senior bureaucrat who attended that meeting.

Menon's primary target at that meeting was Narayanan, who was opposed to the Sharm-el-Sheikh initiative, notwithstanding the very cordial relationship the two men have shared for many years.

The foreign secretary put in words what ministers and senior civil servants who attend regular meetings of the cabinet committee on security already knew: Narayanan had come in the way of every strategic initiative during the five years plus that he had been in the PMO.

Narayanan vigorously opposed the nuclear deal with the US when it was offered by the Americans in July 2005.

In fact, Narayanan changed his mind on the nuclear deal three times during its tortuous course, oscillating between support and opposition, one source privy to those flip-flops had told this reporter at various stages during those changes in his opinion.

As a life-long intelligence official, he could not countenance the idea that India would delink action against terrorism from the so-called composite dialogue process with Pakistan or concede an inch on Islamabad's allegations of Delhi's role in Balochistan.

Menon asked Narayanan what option he had on Pakistan, other than keeping the channels of communication open and resuming the dialogue. He accused Narayanan of dragging his feet on the border dispute with China, a subject which the national security adviser was directly in charge of.

A China expert whose childhood was spent in a school in Tibet, Menon implied that Narayanan's fear of shadows from his days in the Intelligence Bureau was contributing to unfounded suspicions about China and taking Sino-Indian relations downhill.

It was clear from the outgoing foreign secretary's litany of complaints that Indian foreign policy could not continue the way it was plodding along.

Menon painted a picture of stagnation in dealings with the neighbourhood and the Prime Minister realised that the foreign secretary was talking precisely about the problems that had stymied his initiatives, making it impossible to create a legacy based on his foreign policy vision.

This was the moment Singh made up his mind that Menon had to be brought in at an opportune moment as national security adviser.

On March 16 last year, as part of a pre-election series called "Value Judgement" on the UPA's record in office, this newspaper had predicted that "if Singh returns to office, he may just be waiting to see the back of Narayanan".

It was clear at that time that Narayanan would not have a full second term as national security adviser, but no decision had then been taken on who his replacement would be.

However, home minister P. Chidambaram on his own or his efforts in cumulation with the course of events at the end-July meeting on Sharm-el-Sheikh would not have been enough to send Narayanan into exile in Calcutta.

According to one cabinet minister who interacted with Congress president Sonia Gandhi almost daily during the critical legislative approval phase of the Indo-US nuclear deal, she is of the view, in retrospect, that the political deal with the Samajwadi Party to facilitate the nuclear deal was a bad choice.

It was Narayanan, with his intelligence skills, who twisted the arms of Mulayam Singh Yadav and Amar Singh into supporting the UPA in Parliament at that time.

According to another member of the ministry, Sonia told him that she disagreed also with the PMO's decision to vote against Iran at the International Atomic Energy Agency in September 2005 for the sake of the nuclear deal.

Narayanan helped deliver a dead Velupillai Prabhakaran as revenge became a substitute for India's Sri Lanka policy in the final months of Colombo's military campaign against the Tamil Tigers last year.

But as clamour grows across the world to investigate Sri Lanka's human rights abuses and alleged war crimes, there is lurking concern in 10 Janpath, Sonia's residence, that questionable aspects of India's recent role in Sri Lanka may come out at some stage and that Narayanan's presence in the PMO could then prove to be an embarrassment.

Narayanan could hopefully survive any such exposure in Calcutta but not at the heart of Indian foreign and security policies.

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