The Hindu : New Delhi News : Transco blamed for power mess

Online edition of India's National Newspaper
Saturday, Jun 26, 2004

New Delhi

New Delhi

Transco blamed for power mess

By Lalit K. Jha

NEW DELHI, JUNE 25. The Delhi Government-owned Delhi Transco has emerged as a "major bottleneck" in improving the power situation in the Capital, according to power sector experts.

Nearly two years after privatisation of the electricity distribution system in the Capital, while the discoms managed by the private companies have brought in "fresh air" of professionalism and new technology for the benefit of the people according to the experts, "inefficiency and failure" on the part of the Transco during this period have been mainly responsible for hours of unscheduled power cuts across the city.

The situation is likely to turn worse, in particular in the posh colonies of South Delhi which have had a nightmarish summer with power cuts extending up to 15 hours, power experts say. So much so that even the Delhi Electricity Regulatory Commission in its tariff order pulled up the Transco for its non-performance and has warned that it would impose hefty penalty on the power utility if it did not mend its ways immediately.

It is understood that the DERC has held the former Transco head, Jagdish Sagar, and the Director (Operations), S.R. Sethi, for the "non-performance" and "inefficiency" of the power utility, which is responsible for maintaining crucial supply lines in Delhi. Observing that many of its directives with regard to improving the power supply situation were "not" complied with by the Transco, the DERC concluded that it would have serious financial implications, the burden of which will ultimately fall on consumers. "Any further delay in it would also hamper promotion and economy in the electricity industry," it said.

The seriousness of the Transco officials with regard to improving the system can be gauged from the fact that it revised its capital expenditure for the year 2004-2005 from Rs. 328 crores to just Rs. 135 crores. During discussions, Transco officials submitted that the investment plan had to be revised based on the sanctioned plan assistance from Delhi Government. "This gives the impression that due care has not been taken while preparing investment plan and planning the transmission system requirements," it said and questioned the very manner in which its officials have been planning for system improvement. "It is not clear whether investment plans are prepared on need basis or resource availability basis," the DERC concluded.

Figures released by the DERC revealed that the Transco failed miserably in improving crucial power distribution system, which at times has nullified the improvement carried out by the discoms in the two years. The Transco could spend just Rs. 85 crores against the sanctioned Rs. 341 crores for improving the network.

"The Transco Director (Operations) is primarily responsible for the poor show and it is because of him that Delhi is suffering," said a senior official in the Delhi Government's Department of Power. Officials said that despite several reminders from the DERC, Mr. Sethi unreasonably delayed the Transco's response on the major power break down last week in South and Central Delhi. So much so that it is believed that the DERC Chairman, V. K. Sood, himself had to call on telephone Mr. Sethi for sending the report.

Observers of the power sector said the DERC tariff order clearly reflected that the Transco officials have scant regard for the Commission. The DERC has many times pointed out that despite sending several reminders Transco had not been complying with its orders. Referring to the penalty of Rs. 2 crore imposed on the BSES for poor performance, the experts observed that the Transco probably had got the benefit of being a Government company as it was let off with just a warning.

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