Budget 2016: If you are concerned about ever increasing power bills, read this.

As Budget 2016 nears, concerns about the staggering sectors are increasing. Power sector is one of them, that has not seen any significant upward curve in its growth chart in the last five years. State Electricity Boards are facing bankruptcy. They aren’t able to pay the suppliers from whom they buy power. Apart from supply shortage, there is power theft too that is aggravating the problem. This comes at a time when inadequacy of coal supply has almost paralysed the sector.

One can see why the whole power sector is waiting with bated breath, with lot of hopes pinned on Finance Minister Arun Jaitley.

Here’s what the sector expects from the upcoming Union Budget 2016.

Vision 2022

The government should give priority to its ambitious RE power target of 175 Gw by 2022. This will bring the much needed spark back in the sector.

New technology thermal capacity plants

Though the new government is betting big on renewable energy this year, a decision applauded by all, the government should not ignore the power that can be generated by thermal power plants. The first question that comes is where all the coal will come from. Here’s the trick. The supply is already there. Due to lack of other resources there are numerous partially completed projects hanging around in the plants.

Technology has the solution. All the government needs to do is to recognise it and apply new technology in thermal capacity plants to complete stalled projects within a stipulated time.

Transmission and Distribution

It is high time the government focussed on the Transmission & Distribution segment. Several ready power projects are stranded due to either a missing transmission link or because the states are unable to buy the power. Granting infrastructure status to investments in the T&D sector will bring in more participation in the sector.

Power tariff

Sometimes a king needs to rule (instead of leading) to eradicated misrule from his kingdom. Our government is in such a position now. Hiking power tariff might not be a welcoming step, but it is the call of the moment.

GST

Removal of electricity from the exempt category of goods in the GST would ensure improvement of business metrics in the power sector.

(Image credits: indiatimes)