Budget 2016: Too little too late to ensure 24x7 Power for All by 2019?

Nearly 40% of India’s 1.2 billion residents do not have access to reliable electricity and like all other sectors, power has also been on the priority when it comes to announcing big schemes. Prime Minister Narendra Modi has pledged to eliminate the void that has crippled the sector for the past two years. To achieve the target, the centre has launched the Deendayal Upadhyay Gram Jyoti Yojana (DDUGJY) and approved Rs. 43,033 crores to strengthen sub-transmission and distribution infrastructure in rural areas. But one of the main challenges that the government is facing right now is last mile connectivity. Though 96.7% villages are connected, according to 2011 census only 33% households, that is around 8 of 24 crores, do not have electricity.

Modi has announced measures for this too. The centre has got state run enterprises to invest over Rs. 55,000 crores for better grid connectivity. But the whole mission is full of challenges that the government needs to pass in order to ensure 24x7 power for all by 2019. Experts see 2019 as only a far-fetched dream with the present conditions.

Challenges

1. The real test is to connect the grid efficiently between producers and distributors. The current transmission system is insufficient to transfer power from surplus parts of the country to the deficit parts. States are also unable to buy cheaper power.

2. Another fundamental issue is the gap between the cost of delivery and the ability of the customers to pay for that power.

3. To ensure recovery of debt-ridden distributors so that they are able to set tariffs that reflect the true cost of power is another test the government has to pass.

4. India also needs to increase the amount of coal it mines, while also cutting down on theft.

(Image credits: indiatimes)