State discom problems will be resolved soon: Goyal

Resolution of the problems of financially stressed State electricity distribution utilities is “on the cards”, said Piyush Goyal, Power, Coal and New & Renewable Energy Minister, on Tuesday.

At a panel discussion organised by the think tank Brookings India, Goyal said: “I have been having extensive meetings with State chief ministers and I am very confident that in the days to come you will see a significant amount of policy intervention to help distribution utilities get a sustainable institutional framework and get out of the problems they are in.”

The Minister added that he expects losses of the distribution utilities to drop by one-third every year.

“States are fully aware that they will have to get their power sector right. There is $10 billion of losses that distribution utilities make every year right now.

“I see one-third of that getting shed every year. This will reflect on the demand for power.”

Goyal also spoke about issues of over-capacity and low demand for power in the country at present.

“We have sufficient additional capacity to meet the demand that lower interest rates will create. A good developing nation should always have additional capacity,” he said.

Later, while launching a report of the Council on Energy, Environment and Water on Access to Clean Cooking Energy and Electricity in States, Goyal said: “Electrification doesn’t mean access. This report validates what we have already known as a generalisation. It is our mission to provide not just electricity connections but 24x7 power to all.”

The Minister has just returned from the US where he held meetings on climate change and renewable energy with top investors and policymakers.

Talking about his discussions on climate change, the minister said: “We do believe that the polluter pays principle should apply in the world and the polluter countries should pay to clean up the world. We are yet to see a credible affirmative action from the West.”

“I think the world will be extremely pleased with the contributions India will make in the climate change fight. This is despite India not being even close to the largest polluter in per capita terms,” he said.

Goyal also added that in discussions with investors, large fund houses have assured him of investments of up to $10 billion for the renewable energy sector.