Paper promises reforms, but not much for summer

The two-part strategy paper, first reported by Express Newsline was released today by the seven-member team including Delhi’s Power Minister Narender Nath, who authored the policy along with the Congress party’s economic expert Jairam Ramesh. The first part of the paper deals with the long-term reform package which concentrates on restructuring of the DVB and opening up of power generation for private participation.

In fact, to overcome the Capital’s acute short-fall, the Delhi Government has decided to allow anybody who has the knowhow and the capital to generate and sell power in Delhi. The built-operate-transfer (BOT) technology could be adopted in generation sector. “Delhi has to import 80 per cent of its power from outside and only generates 20 per cent within its territory. And 17 per cent of Delhi’s meagre Rs 400 crore budget eaten up by the power sector. So it has depend on additional sources to maximise power generation,” Ramesh explained.

Divorcing generation and transmission from DVB, the State Government plans to set up a Delhi Power Generation and Transmission which would be registered under the Companies Act and follow the rules, regulation and work culture of the NTPC and PGCIL. The Power Minister clarified that distribution of power will continue to be under the government though the generation part would be open for the private parties and joint ventures.

At a later stage, however, the distribution and transmission sector would also be opened for joint ventures with the government retaining the majority stake.

Nath said six new power distribution companies are proposed to be set up to look after the transmission and distribution network from 66 kv to 400 volts, consumer power supply, metering and revenue collection in the existing six circles of the DVB. These companies will have the flexibility to be organised as joint ventures, he added.

The distribution of assets and liabilities among the DVB’s successor entities would be based on a detailed technical and financial analysis by professional experts.

The Power Minister also assured that all legitimate interests of the DVB employees would be protected as part of the restructuring. There would be no retrenchment or change in service conditions to the detriment of the staff. Pension and terminal benefits will be safeguarded by the Delhi Government.

Delhi’s Chief Secretary, Omesh Saigal, clarified that “DVB will be there to look after the staff and to supervise the operations of the companies, besides dealing with the NTPC, other private sector and the Central Government for solution of power problem.”

However, the most path-breaking point of the reform package is, perhaps, the setting up of the statutory Delhi Electricity Regulatory Commission by February 15. The Commission would undertake licensing of new capacity, prescribe performance standards and fix tariffs after appropriate consultations.

The second part of the reform package exclusively concentrates on the problems of the coming summer. Saigal, who will also chair the Task Force which would work out the short-term Summer action plan and monitor its implementation, said, “We demand would come down once the power theft is brought under control. Our approach would be: `If we (Delhi Government) fail, it is because you (the consumer) fail to cooperate with us’.”

The paper promises that a task force under the chairman of the Chief Secretary Omesh Saigal will take immediate steps to overcome the summer shortfall and results would be puring in by April.

Apart from optimising, DVB’s existing generation capacity, the government will buy power from other sources, including 100 MW from the Eastern Grid and 100 MW Himchal Pradesh.

The State Government is also persuading the Central Government to maintain grid discipline in neighbouring state so that any shortfall of power can be anticipated and managed beforehand.

To control power theft, the Government plans to shift the initiative on the consumer. A period of four weeks would be given to consumers to legal electrical connection. After the due date, strict penal action would be taken including disconnection of electricity.

The process of giving legal connections would be simplified and limited to filing up of one or two forms. And metered supply will be provided. The DVB will have a dedicated police force to help nab illegal electricity tapping and defaulters.

The Summer Task Force will also strictly monitor the implementation of the plans such as, Bamnauli 220 KV switchyard which will benefit West Delhi; oversee the augementation of the 66 KV sub-stations at Vihar, Bodehala, Shastri Park, Hari Nagar, Dwaraka and Mohan Cooperative.

It would also see to it that all new consumers having load of more than 11 KW to be provided with electronic meter and increase mobile transformer vans in each of the 30 districts to attend to consumer complaints.

Delhi Chief Minister Sheila Dikshit, has decided that the strategy paper be placed before the Cabinet next week and a Bill in this regard was likely to be introduced during the Budget session of Delhi Assembly.

The Chief Minister was conspicuously absent from the press conference, though she was scheduled address it. And Nath hurriedly wound up the briefing and left without satisfying several queries.