The Hindu Business Line : Power import

Given the geo-politics of the region, India’s private sector will need substantial official backing if the power import target of 5,000 MW by 2020 is not to be jeopardised

That the country suffers from an 11 per cent power deficit is well known. With domestic capacity addition failing to keep pace with demand growth, every effort will have to be made to step up power availability, even if this means higher power imports. This, in fact, is the background against which reports indicating that the Centre is working on a power import policy from neighbouring Himalayan-rim countries should be seen. The focus, understandably, is on hydro-electric generation because of the geographical characteristics of countries such as Nepal, Bhutan and Myanmar, the rising cost of energy from fossil-fuels obviously making the search for alternatives even more pertinent.

The policy, as indicated, is likely to focus on two specific aspects, namely, facilitating power imports from these countries and ensuring a greater role for private players in the process. Both are no doubt important although it may be argued that much will now depend on the nature of support that New Delhi will extend to private players who are now expected to play a more important role in making investments than previously, especially in Bhutan. This is because of the change in Bhutan’s power investment policy which now allows foreign direct investment, thereby opening up its power sector to private players. Hitherto, Indian public sector units were involved principally in Indo-Bhutan power collaboration, which had given the Indian presence a focussed, official edge; that may now change under the new Bhutanese policy dispensation. Given the geo-politics of the region, India’s private sector will need substantial official backing if the attainment of the Indian power import target of 5,000 MW by 2020 is not to be jeopardised. More important than Bhutan is the hydro-electric potential of Nepal totalling 83,000 MW of which 45,000 MW can be effectively exploited. Although a number of Indian investors have, of late, succeeded in securing projects there, the future is a bit uncertain under the new regime. The problems surrounding the 750 MW West Seti project is a good example of the sort of opposition Indian projects face in Nepal. Myanmar — with a hydro-electric power potential of 39,720 MW and an installed generating capacity of just 747 MW — is a totally different kettle of fish mainly because of the fact that countries such as China have a finger deep in the Myanmarese pie. The problems with the 1,200 MW Tamanti project is a case in point. Yangon unilaterally revised it to 2,400 MW leaving the National Hydroelectric Power Corporation (NHPC), which had drawn up the original project report, high and dry.

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