The origin and growth of power sector in Tamil Nadu

Tamil Nadu's electricity crisis was something that was waiting to blow up. Power shortage and the consequent load-shedding are not new to the people of the State.

In fact, they have been living with the problem for quite some time. Successive governments have done precious little to address this problem with the kind of seriousness it demands.

They were keen more on using it to score brownie points or settle political scores with their predecessor regime.

The problem has assumed worrying dimensions over the last few years because there has been no significant addition to power generation, while the demand has grown by leaps and bounds. It turned so acute in 2008 that the Electricity Board had to declare a “power holiday” across the State and resort to unannounced load-shedding on numerous occasions.

The reasons for the crisis are many. From free power supply to agricultural pump sets — a scheme whose coverage has expanded over the years — to not recovering the cost of generating electricity, the causes are manifold.

The parlous state of Tamil Nadu Electricity Board's (and now that of its restructured entities) finances has contributed in a large measure to its inability to cope with the crisis.

In this book, the authors analyse the growth of the electricity utility in Tamil Nadu, since it came into being in 1957, and trace the genesis of the problem of power shortage.

According to them, the present crisis had its beginning in early 1990s, when the Government at the Centre decided to throw open electricity generation to the private sector and offered various incentives to attract investments.

The Centre entered into agreements with private sector companies designating seven of the projects as “fast track” ones. For their part, the States too vied with one another in striking deals with promoters, and Tamil Nadu was in the forefront of this race.

But not all these projects took off. On its part, the TNEB took no credible initiative by way of making up for the shortcomings on this front.

Long term planning

Building up power generation capacity calls for long term planning and sustained effort. It cannot be done in fits and starts. The authors draw a parallel with the railways, where projects are regularly announced and promptly taken up for execution.

However, the power crisis that has overtaken Tamil Nadu cannot be blamed entirely on the privatisation-centric agenda of the 1990s. The fact is that those in power and in administration conveniently used it as an excuse for not doing anything.

Moreover, they introduced various measures that were seemingly beneficial to the targeted population, but ended up ruining the electricity board.

A monograph of sorts, the 136-page book is a good compilation of all the relevant data and information related to the origin and growth of the power sector in Tamil Nadu.

It also puts in perspective the major issues the State is facing in this critical area of development.