Electricity Power Crisis Issue: So India is going in a Deep Power Crisis?

Banks have a debt of Rs 1.5 lakh crore on 34 power companies linked to the electricity sector in the country. Many of these companies contribute to the country’s power generation. These include 34 electric companies, including Jindal, JP Power Venture, Prayagraj Power, Jhabua Power, KSK Mahanadi, Coastal Ernjan. If these companies stop production, this will result in huge power shortages in the country. At the beginning of this year, the sub-committee of the Parliament had said that there is a crisis of 34 thousand MW electricity generation in the country. Because these power companies are either not buying electricity or they are not getting coal for production. However, some experts believe that there can be a shortage of 50 thousand MW of electricity across the country.

According to a report from the Ministry of Power, in UP, there was a demand for 17,183 MW in the financial year 2017, while the supply of 15,501 MW of electricity was required. If there is a 50 thousand MW power shortage, then it will be dumped in the darkness of the demand for power equivalent to UP.

The Union Finance Ministry can negotiate with the Reserve Bank to resolve this crisis. According to an Indian news Agency, under the Allahabad High Court order, the Ministry will consult with the RBI. However, the court refused to give any interim relief to the private power companies by the order of February 12 on the NPA of RBI. 8-9 current power projects will be affected by the decision of the Allahabad High Court.

Now, what to do?

The Reserve Bank of India (RBI) gave 180 days to the companies involved in the debt-ridden 34 power sector. Which had been now over on 27 August 2018. Now there are only 15 days left. In this period, the companies drowning in debt have to clear their loan account or provide solutions. If this does not happen, the case will go to the National Company Law Tribunal (NCLT). Then NCLT will ask banks to solve it However, banks want to deal with this issue outside. Because going to the NCLT will also affect them.

How much Electricity was supplied?

In 2017-18, there was a total demand of 12,12,134 MW in the country, while 12,03,567 MW of electricity was supplied. I.e. 8567 MW of electricity was reduced. In 2018-19 (till June 2018) there was 3,25,428 MW demand while supply was 3,23,418 MW. There were also about 2000 units of electricity down.