The Hindu Business Line : Power initiatives

At the core of the beleaguered power sector is the ownership issue. Are the State governments responsible to the public or is it the Central government's role? Governments at the Centre and in the States have conveniently not addressed this issue as it affects their vote-banks.

No sector invites private capital with assured returns with most of the cost variables being pass-through.

In spite of it there is little capital coming into this sector. It is, therefore, clear that what is needed is enabling provisions, which allow for a sensible business plan to be implemented by competent organisations so that effective returns are obtained.

Enabling provisions include the power to enforce interference-free "disconnection" of power supply in the event of default, recovery of dues with penalties and, above all, a free environment where an organisation can perform without the elected representatives having their say on day-to-day matters.

While the country has made major strides in new technology areas, it is disheartening to see that it is not able to make much headway in providing this basic infrastructure. India is a leader in many areas of the telecom sector, and has made great strides in the transportation segment, with the Railways achieving world-class performance.

Policy-makers should quickly address the problems in the power sector and come up with workable models that make optimal use of the plentiful talent and capital available.

V. Balakrishnan

Chennai

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