Inoperative power generation assets of state
- The People's Chronicle Editorial :: April 09, 2022 -

THOUGH the amount of Rs 180 crore granted to Manipur for ramping up the power sector seems inadequate when compared to the higher allocations received by three other north-eastern states, such assistance demonstrates the Union government's focus towards maximising efficient usage of the power sources to meet the increasing demand for power supply.

Apart from Manipur, the Ministry of Finance's Department of Expenditure is reported to have granted additional borrowing permission of Rs 28,204 crore to nine other states for undertaking stipulated reforms in power sector in 2021-22.

While bigger states with larger population have rightly received greater incentives with efficient utilisation of the amount granted to Manipur some significant changes could definitely be brought about.

The 10 states were granted additional borrowing permission of varying amounts on the recommendations of the Fifteenth Finance Commission with additional borrowing space of up to 0.5 per cent of the Gross State Domestic Product (GSDP) every year for a four-year period from 2021-22 to 2024-25 based on reforms undertaken in the power sector.

The finance ministry's financial support underscores that Manipur too has been conforming to standard guidelines for administrative reformation and making efforts to ensure that the citizens are not deprive of their basic needs.

As the objectives of granting the financial incentives as additional borrowing permissions for taking up reforms in power sector are aimed at further improvement of the operational and economic efficiency of the sector, and promote a sustained increase in paid electricity consumption, the entitlement could be construed as outcome of satisfactory compliance with the prescribed guidelines and criteria set by the Department of Expenditure.

With Manipur among the first few states in the country to adopt the pre-paid meter system, there has been significant improvement in the power supply situation in-spite of the fact that the electricity generation capacity in the state has been far short of the demand.

Considering the inevitability of using electricity for domestic as well as commercial purposes these days the public consumers would be more than willing to pay in order to avail ceaseless supply.

With use of electrical devices and machines multiplying at a rapid pace, there is need for constantly increasing the power supply without which life would come to a standstill, literally.

However, as the state is financially dependent on the centre, there is remote possibility of taking up major power generation projects other than thorough assessment of the existing projects, including the failed ones, propose feasible projects and hope that the Union government would extend necessary assistance.

While streamlining the power supply mechanism, curtailing loss in transmission and preventing default in clearing the dues wouldn't take much effort, the challenge would be in meeting the increasing demand as use of electricity is no more limited to lighting up the house and operating the various devices of comfort but the imminent rolling out of electric vehicles as well.

As continuous purchase of power from other states would only lead to depletion of the state's frail exchequer, the government may plan revival of some conked assets such as the Khuga, Singda and Thoubal multipurpose projects, which are yet to generate a single unit of power.