Power companies are running below capacity for lack of coal while new power projects are delayed because of coal and gas shortages
The collapse of the northern grid at 2.30 am on Monday is a wake-up alarm for the government to get working on India’s creaking infrastructure. The reasons for the collapse, said to be the worst since 2001, are being looked into by a high-powered committee of experts set up by Union power minister Sushil Kumar Shinde, but it must be said to the credit of the Power Grid Corporation of India that it got the power completely on-stream within 12 hours against the usual one or two days.
This, of course, is little comfort to the estimated 300 million people who suffered 12 gruelling hours without power in the heat and those stuck aboard long-distance trains. Among the states affected were Chandigarh, Punjab, Haryana, New Delhi, Himachal Pradesh, Rajasthan, Uttar Pradesh and Jammu and Kashmir.
Monday morning saw trains and metro services thrown out of gear. Hospitals and essential services were badly hit though many did have back-up power since the north is used to irregular power supply and many are prepared for such an eventuality.
Power was restored partially within six to eight hours and in 12 hours life was back to normal. Modern lifestyle is heavily dependent on electricity which is also a symbol of progress.
But will the UPA-2 government take steps to get the infrastructure bottlenecks out of the gridlock? It has for over a year been unable to deal with the power situation where Coal India is buying coal at market prices and having to sell it at fixed prices. Power companies are running below capacity for lack of coal while new power projects are delayed because of coal and gas shortages. The transport system is severely hampered by bad roads, which also add to the wear and tear of tyres and trucks. The national highway roads programme is moving at a snail’s pace and this makes transport of goods exorbitant. Over 65 per cent of domestic trade moves by road, yet the government is unable to get its act together to get the road programme going. The situation is the same with the railways where there isn’t even a seriously working and concerned railway minister. The ports are jammed, so whilst container ships in Shanghai turn around in eight hours, in Mumbai it takes two to three days.
The major impediment is land acquisition as land is needed for all projects, whether for infrastructure like airports or for industries where several steel and iron ore projects are held up for want of land.
It is unfortunate that all the brave talk of a month ago by Prime Minister Manmohan Singh, who took over the finance portfolio after the exit of now President Pranab Mukherjee, remains just words. The policy paralysis, red tape and corruption continue.
Comments
For many emerging economies,
Droog
31 Jul 2012 - 22:17
For many emerging economies, the infrastructure problem is a dilemma. North America invested heavily in infrastructure during the boom years after WW2, but those investments were much less expensive than what it would cost to equal the scope of the investment in 2012. However, the investment is one that both must be made and also will have a carry-on effect for generations to come. Without direct knowledge of the domestic situation, the impression that I get from afar is that at least India has the manpower to put to work on these type of projects. Crucial upgrades to roads and rail, power (nuclear is the best option) and telecommunications are essential for any nation hoping to move forward in the 21st Century. But one thing that is also essential that seems to be somewhat lacking in India, is organization and accountability of Government. India is billed as the Worlds Largest Democracy, and the People that vote need to be much more proactive in order to reduce the incentive for corruption and dishonesty that seems, to an outsider, to be a predominant feature of the political landscape in that country. I wish them all the best, but they need to do some bootstrapping to have a chance to sustain the massive potential that they have shown in the last 30 years. It will be a challenge.
For many emerging economies,
Droog
31 Jul 2012 - 22:17
For many emerging economies, the infrastructure problem is a dilemma. North America invested heavily in infrastructure during the boom years after WW2, but those investments were much less expensive than what it would cost to equal the scope of the investment in 2012. However, the investment is one that both must be made and also will have a carry-on effect for generations to come. Without direct knowledge of the domestic situation, the impression that I get from afar is that at least India has the manpower to put to work on these type of projects. Crucial upgrades to roads and rail, power (nuclear is the best option) and telecommunications are essential for any nation hoping to move forward in the 21st Century. But one thing that is also essential that seems to be somewhat lacking in India, is organization and accountability of Government. India is billed as the Worlds Largest Democracy, and the People that vote need to be much more proactive in order to reduce the incentive for corruption and dishonesty that seems, to an outsider, to be a predominant feature of the political landscape in that country. I wish them all the best, but they need to do some bootstrapping to have a chance to sustain the massive potential that they have shown in the last 30 years. It will be a challenge.
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