Power crisis artificial, to aid private corporations, says E A S Sarma

He was speaking at a seminar on Energy Security in Telangana and Andhra Pradesh Realities and Way Forward. Other experts pointed out that the present power crisis had been heightened by the fact that the government, along with Reliance, had manipulated the cost per unit of gas against the actual cost in the market, to suit corporate interests.

“First they had shown inflated gas reserves, which were later revised showing a smaller gas pool in the KG Basin, but those too have been designed to suit corporate interests,” pointed out the former secretary (power).

The fact that Reliance had scaled down the gas reserve estimates to get a higher price fixed was also pointed out. “Reliance has quoted $2.34 dollar per mmbtu of gas, but on insistence of Reliance the empowered group of ministers headed by Pranab Mukherjee had approved a price of $4.2 based on a contrived formula submitted by Reliance.

Subsequently, the Rangarajan Committee has recommended $8.4 per mmbtu, almost double of the cost. Now the Modi government has enhanced it to $5.65 from $4.2. This is the people’s wealth, which is ultimately being used to suit corporate interests.”

“To solve the present energy crisis, the basis for division of power should be actual demand average based on five years (supply plus power cut imposed). The Andhra Pradesh Electricity Regulatory Commission had also adopted the same principle and as incorporated in the Andhra Pradesh Reorganisation Act, the projects belonging to the APGenco of undivided Andhra Pradesh can be allotted on geographical basis to both the states and whatever is less than the ratio can be given by GoI from its generating stations.

If this kind of an arrangement is made, it would resolve all the problems and disputes,” said M. Venugopal Rao, convener, Centre for Power Studies.