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March 6, 1999

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Goans oppose plan for privatising power transmission and distribution

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Sandesh Prabhudesai in Panaji

Goa has rejected a plan for total privatisation of transmission and distribution of power, and has resolved to corporatise the electricity department. Private participation, yes, but government will retain control.

Power shortages and T&D losses have crippled Goa's development for some time now, besides compelling the high court to ban new industrial / commercial connections for one year.

President's rule in Goa has witnessed a healthy public debate on the issue. Professionals, small industrialists and trade unionists are on one side and the Goa Chamber of Commerce and Industry on the other. The chamber demands majority stake for the private sector in the proposed power corporation.

However, everyone agrees the proposed corporation should be run by professionals, not politicians. The latter are being blamed for "state-sponsored power thefts" which drain the exchequer.

Goans' resolution would be implemented only after a new elected government assumes charge. Governor Lt Gen (retd) J F R Jacob held the public debate on March 5 as per the last cabinet's decision. It remains to be seen whether the new government would abide by the public opinion.

Representatives of small industries and trade unionists sought to expose how statistics were doctored and artificial shortage of power and funds created by politicians in power, to allow private firms to generate power in the tourist state.

The tourist state depends entirely upon the National Thermal Power Corporation's power supply from the neighbouring states. Although it had allowed private power generation, privatisation of T & D could not fructify because of contradictory stances of successive government.

Business News

Goa

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