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Question

Discuss the reforms which have been initiated recently to meet the energy crises in India.

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Solution

The following reforms have been Initiated by the government to meet the energy crises:

(i) Privatisation in Power Generation - Power generation sector has been opened up for the private sector. and the government monopoly in the generation and distribution of electricity has been eliminated to gain competitive efficiency.

(ii) Privatisation in Power Transmission and Distribution - The Indian Government has approved private companies like Tata Power and Reliance Energy along with Power Grid Corporation of India for constructing transmission networks and to look after distribution of power supply in certain states.

(iii) Regulatory Mechanism - The Central Electricity Regulatory Commission (CERC) along with State Electricity Regulatory Commission (SERC) has been established in 19 states under the Electricity Regulatory Commission Act, 1998 to regulate tariff and to promote efficiency and competition.

(iv) Rationalisation of Tariff - Tariff rates have been revised upwards to discourage wasteful consumption of power and bring down the losses of SEBs.

(v) Accelerated Power Development and Reform Programme (APDRP) - It was initiated in the year 2000-01 with the objectives of improving financial viability, reducing transmission and distribution losses and promoting transparency through computerisation.

(vi) Creating Awareness - Government is trying to create awareness among the public towards the conservation of energy. Various programmes like National Energy Efficiency Programme (NEEP) that aimed at conservation of petroleum products, have been initiated. Use of non-conventional sources of energy like solar energy is being popularised.


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