'Identifying sites in J&K for new power plants'

How is govt seeking to ensure that power supply stays ahead of demand?

We are continuously expanding our generation. Earlier, the focus was on thermal capacity addition. The priority now is renewable energy, especially solar. Since solar power is not available round the clock, we are focusing on storage solutions. Nuclear energy will also contribute. The current capacity is around 8GW and 12GW is in the pipeline. Our long-term target is 100GW of nuclear capacity by 2047, and states have been encouraged to develop at least one project each. Continuous power can come from thermal, nuclear or gas. Gas is expensive and therefore not a priority. In 2014-15, the demand-supply gap was around 5.5%. By 2024-25, it came down to 0.1%, which is largely due to technical factors.

There is pressure from developed countries to shut down coal-based thermal power plants. What will be India's policy?

Our priority is clean and green power. Continuous supply is needed for grid stability, and thermal power provides that. All thermal projects that can be developed up to 2032 have already been planned. Around 20,000MW of capacity is under development. After that, new thermal plants may not be necessary because India has committed to achieving net-zero emissions by 2070. Thermal plants that exist will continue until the end of their life cycle, but the overall share will gradually decline as renewable energy expands.



How will the gas shortage impact power generation?

I don't want to comment bec-ause it's an evolving situation.

Discoms have reported a profit of about Rs 2,700 crore. However, the sector still has large debt and accumulated losses. How will this be addressed?

Earlier, losses increased because tariffs were not aligned with costs. Govts often announced free or subsidised power, so cost of supply was higher than tariff charged. In some cases, the gap reached Re 1 per unit. Gradually, states have started addressing this issue. AT&C losses have fallen from 23-24% 10 years ago to ar-ound 16%. Illegal connections were removed and billing systems improved. Despite these improvements, accumulated losses remain around Rs 6.7 lakh crore. Earlier, the UDAY scheme transferred discom debt to state govts. A similar approach is being considered along with reforms, such as partial privatisation.

Which states are taking steps toward privatisation?

Gujarat has begun moving in that direction, Haryana is exploring the option and UP is considering further private participation. Haryana has proposed a model where a separate company will handle ag-ricultural electricity connections. Agricultural feeders wi-ll be separated and power accounting will become clearer.

Farmer organisations have protested in some pl-aces against privatisation. What message does the Centre want to give them to address their concerns?

Farmers mainly require reliable electricity for irrigation. Whether supply comes from a govt company or a private one does not affect opera-tions. Subsidies will continue.

There is discussion about having two discoms in the same area so consumers benefit from competition. Is the idea of multiple suppliers being considered?

Yes, it is being examined. Electricity quality cannot be differentiated because once power enters the network, it gets mixed. The system would function somewhat like the telecom sector, where consu-mers choose their service provider. The physical network will remain the same. Wires and meters won't change. Only the supplier providing electricity behind the network will change, and digital systems will track how much ele-ctricity each supplier provi-des. Consumers will be able to select their supplier based ma-inly on tariff. The concept is still at an early stage and req-uires legal and policy approval before implementation.

When will smart meters be installed in all homes?

n Initially there was resistance, especially in rural areas, but people have started understanding the benefits. With prepaid smart meters, companies also receive payments in advance. If these are widely adopted, nearly Rs 1 lakh crore can enter the system as adv-ance payments, improving liquidity in the power sector and reducing the need for loans. Some states already provide incentives for prepaid meters.

After the suspension of the Indus Waters Treaty, will new hydro projects come up in Kashmir?

Some plants are already operating, and desilting work is being undertaken to restore reservoir capacity. Work has also started on three-four projects that were stalled. Additional projects are being pla-nned, and site identification is under way. There are also proposals to divert water towards Punjab and further to Rajasthan, Haryana, UP and Delhi through canals or tunnels. There are two-three possible routes; we have to see which one can be built faster and will be financially viable. One that has been proposed through the city of Jammu may not be feasible. The feasibility of another alignment around the city is being checked.
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