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Blackouts Show Lack of Private Investment in India
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Private companies such as Reliance Power and Tata Power control only 27% of India's power generating capacity of 205 gigwatts. The government controls most of the capacity in this sector for generation and transmission of power and has failed to invest enough to keep up with growing needs. The government has failed to achieve even modest expansion goals for power generation. A target of 78.7 gigawatts of additions to the national grid were planned for the five year period ending March 31, 2012, but only 70% of that target has been met. China during the same five year period added 418 gigawatts. State utilities sell power at discounted rates resulting in large losses, making it difficult to invest in upgrades in transmission technology and facilities. Rate regulations make it unattractive for private investors. Another problem is the shortage of coal, with coal production concentrated in one state owned firm Coal India that has failed to invest in new technology and improvements. The result is the kind of massive outages from overload of the national power grid in July 2012, affecting most of northern and eastern India.
Electricity and power development in India.
02/11/2010
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India's Congress government version of events presents it an issue of constitutional sovereignty. Indian public opinion sees it as truly an issue of controlling widespread corruption. Freedom of the press and freedom of assembly are guaranteed in India by the constitution and is exercized continuously since 1947. Corruption at all levels in India in the delivery of public services and in the development of infrastructure has to be experienced to be fully grasped. It acts as a perpetual tax on the middle class and the poor. One has to carefully read the draft of the anticorruption bill drafted by the Congress government, and understand how things function locally today, to realize that it is designed to make little difference in the current state of things. Designed that way because it is a silent but no less explicit intent of the government, political parties, the bureaucracy and interests that have advantages with the existing system, to preserve the status quo. Activist Hazare's bill is designed to give the anti corruption body called a Lokpal the powers it needs to be effective. The prime minister could be exempted but the bureaucracy at all levels and members of parliament and state legislatures if immune to this kind of oversight, would in a developing country with the local conditions of India, render it meaningless. Because this is where the corruption resides. Limits of overreach by the Lokpal come from the body simply acting as a referral system which sends the cases to the judiciary. In doing so constitutional powers are actually vested in the judiciary and the Supreme Court as the final arbiter. India's system of government does not confer sovereignty to parliament- as the Congress government contends- but divides powers between the President, Parliament, and the Judiciary, with a system of checks and balances as in the U.S. Because the current system has delivered a high rate of growth there may be even a tolerance for corruption as a necessary evil as practiced in China. Conditions are differen
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Lower monsoon rainfall affects the amount of electricity generated from hydroelectric power stations such as the one at the Bhakra Nangal dam in northern India. India depends for about 20% of its energy on hydroelectric power. The delayed monsoon in 2012 may have aggravated the load on the power grid in India with farmers needing to pump water and lower hydroelectric generating capacity.
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The July 2012 power outages in northern and eastern India
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An overloaded national power grid leads to power outages affecting northern and eastern India. A shortage of coal is restricting India's efforts to meet is power needs.
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