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Privatise power distribution, says Goa industrialists

Sandesh Prabhudesai in Panaji

Rather than setting up private power generation projects, Goa needs to privatise the transmission and distribution network to ensure a speedy industrial growth, industrialists in Panaji feel.

The president of the Goa Chamber of Commerce and Industry, Dattaraj Salgaoncar, son-in-law of Dhirubhai Ambani, asserts that the problem of quality power could be solved only by improving its transmission and distribution network. Salgaoncar is is setting up Goa's first 40 mw power project.

Goa's transmission and distribution losses are much higher than the national average, ranging between 23 to 25 per cent, while its commercial losses are around 12 per cent. Goa is also unable to wheel the 440 mw of power allocated to it from the different stations of the National Thermal Power Corporation.

Its present wheeling capacity is only 180 mw while the actual requirement in the present circumstances is around 255 mw. The planning board of the state has projected the requirement of around 410 mw by AD 2002 at an annual growth rate of 10 per cent.

While fully supporting private power generation projects, Gopal Srinivasan, president of the Zuari Agro Chemicals Ltd, suggests that eight mini power projects be set up within a decade as Goa would require 30 mw each of additional power annually. "The hike in power tariff is inevitable and quality power should be our main concern," he adds.

Salgaoncar Reliance Ltd has quoted a rate of Rs 2.05 per unit, almost twice what the Goans are paying today. The local Bharatiya Janata Party unit in Panaji has, however, opposed it, arguing that Goa should first transmit the shortfall in power allocation from the NTPC, which can be distributed at the present tariff structure.

Salgaoncar, however, dismisses the opposition stating that it is senseless to raise objections at this stage when the power purchase agreement has already been signed and work on the project has begun. Goa Chief Minister Pratapsing Rane has promised not to burden the common man by hiking the power tariff but to compensate for it.

Former chairman of the Mormugao Port Trust and industrial consultant Arvind Bhatikar, seconds Salgaoncar. "In view of the scarcity of resources and the need for better management of power distribution in the tiny tourist state, privatisation of the transmission and distribution network is the only permanent solution," he feels.

While estimating that an investment of around Rs 20 billion will be needed to generate 500 mw of power and to improving the transmission and distribution network, the state government has now planned an investment of Rs 1.18 billion in the next two years to build the basic infrastructure with more substations, etc.

Chief Minister Rane has also demanded a share from the Kaiga atomic energy plant, coming up close to Goa in the neighbouring Karnataka state. Once agree upon, the plan is to set up a power substation with a 400 kva line on the Goa-Karnataka border with private participation, besides privatising its distribution network.