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BY: Prof Vijay Kumbhar | Category: Business and Finance | Post Date: 2009-11-21

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   Prof Vijay Kumbhar
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By: PROF. MR. KUMBHAR VIJAY*, Dept. of Economics, A.M.A & N C, S College, Rajapur, Dist - Ratnagiri State- Maharashtra PIN 416702

Electricity is an essential requirement of our life. It is the basic human need in the modern life style. It is an instrument of economic development of the country; we can say that, electricity is a life line of the developmental procedure of the economy. Hence, there is need to supply the electricity at reasonable rate which is essential for overall development. Electricity is recognizing one of the key drivers for rapid economic growth. Growth of Power Sector in all states in India has been significant since Independence. But generation of electricity is little than their demand, due to the rapid industrialization, modernisation of agricultural and other services. All states are in India having facing a problem of insufficient electricity supply than its demand.

However, Maharashtra is also having a problem of electricity; the demand for electricity has been overtaking the growth of availability in Maharashtra. The disparity between demand and supply of electricity increased due to industrial development and increasing demand of electricity to agriculture and domestic use. The Maharashtra is fighting with the problem of insufficient power supply due to inadequacies in generation, transmission and distribution as well as inefficient use of it.

The Maharashtra is one of the most developed states in India. The state succeeded in maintaining its first position in India. The contribution of state in value of output is 21per cent in the organized sector. State's share in industrial investment and employment is 12 per cent in the country. At the end of year 2007 total 22,528 factories are having power operated. Now an IT industry is emerging a most important industry in the Maharashtra. Even agriculture occupation is most important consumer of electricity in Maharashtra.

The Maharashtra has a public and private electricity generation projects. Other than these special energy projects; some industrial units and co-operative sugar factories are also generating electricity in Maharashtra. The MAHAGENCO is major government owned producers of electricity in Maharashtra and Tata Power, Reliance Energy, Dabhol Ratnagiri Gas and Power Private Ltd - (RGPPL), Central India Power Company - (CIPCO) , ESSAR Power, GMR Energy, ESPAT Energy, Spectrum Technology, Jindal Power Corporation are some other private players. Even some non-conventional energy projects like Wind mills, Biomass and other types of energy generation plants are generating power in Maharashtra.

Till year 2006-07 total installed power generation capacity is 15,453 MW in Maharashtra. It has been increased marginally by 384 MW at the end of 2006-07 over the previous year and it stood at 15,453 MW from 759 MW in the year 1960-61 to 2006-07. Table No.1 is shows all the details of installed capacity of electricity generation in Maharashtra. Now some private industries are trying to electricity to their self use and they seal their excess electricity to

MAHAGENCO. The wind mills projects are also playing vital role in generation of electricity since 2005, in Maharashtra.

Overall electricity production of all the projects is increased from 3268 MW to 73120 MW from 1960-61 to 2006-07. Thermal and Hydro energy production is the most important source of electricity generation in Maharashtra. Thermal power is gradually increased from 1835 MW to 58559 MW from 1960-61 to 2006-07 and Hydro power has increased from 1365 MW to 7788 MW in same period. Even, Nuclear power also become one of the important power supply channels from the nuclear power projects of central government and Maharashtra has been getting its share, which increased from 1209 MW to 2442 Mw from 1961 to 2007.

The aggregate consumption of electricity in Maharashtra during 1960-61 was 2720 million KWH but it is increased 62,085 million KWH till 2006-07. It is increased 22.82 times as compared to year 1960-61. The industrial sector takes 42.7 per cent of power and which is largest consumer of the electricity in the State, followed by domestic 23 per cent and agriculture sector 15.7 per cent. These three sectors together accounted for 81.5 per cent of the total electricity consumption in the State.

Distribution is the most critical segment of the electricity business chain. The real challenge of reforms in the power sector lies in efficient management of the distribution sector. Distribution losses are a major problem of electricity generation in Maharashtra. In year 2006 to 2007 an average distribution losses are near about 29 per cent as per table no. 6. The losses in the distribution is affecting on the supply of electricity in Maharashtra, it creates shortage of electricity and increase the burden on regular consumers of electricity. These losses are arising due to the theft of electricity and some technical problems in the distribution of electricity. The following table shows that, there are 54 per cent of distribution losses in the Latur zone and 40 per cent in the Aurangabad zone. We can on the basis of this table there are low distribution losses in the Kalyan, Nagapur, and Pune zones in Maharashtra. According to the MAHATRANCO there are 36 flying squads operate at different places in the State. During 2006-07, squads of detecting theft have detected 12,219 irregular/ unauthorised electric connections, of which 3,063 were theft cases. During 2007-08 upto the end of December, 2007, the corresponding detected theft cases were 2,241.

• High demand and less supply of electricity
• More and more load shading including urban and industrial areas
• Low voltage supply and irregular supply in rural areas
• Problem of distribution losses wastage, misuse and theft of electricity
• More dependency on thermal and hydro power
• Low efforts and generation capacity of non-conventional power
• Lower use of modern technology in power generation

While, MAHADISCOM are try to manage demand and supply of electricity. Some schemes are implemented for the optimum power supply like ‘Akshay Prakash Yojana', Bhagirath Yojana, voluntary load reduction scheme in small cities, single phase supply in villages and introduction of capacitors on agricultural pumps and Act against theft of electricity.

• For achieving efficiency gains proper restructuring of distribution utilities is required in the system of MAHADISCOM.
• MAHAGENCO should tie-up with most private power producer and available optimum electricity to the industrialist, agriculture and other
• Private sector and local participation in distribution needs to be encouraged for achieving the requisite reduction in transmission and distribution losses.
• High Voltage Distribution System is an effective method of theft and improved voltage profile and better consumer service.
• To develop an efficient system to find theft of electricity and provide incentives to the system for each identified case and try to better implementation of the Act against theft of electricity. The government should allow setting up special courts for theft of electricity.
• In order to forthcoming demand of electricity, there is a need to develop an additional capacity of power generation and maintain adequate reserve.
• There are a great potential of use of IT in reducing technical and commercial losses in distribution of electricity.
• Non-conventional sources of energy being the most environment friendly there is a need to promote generation of electricity based on wind, biomass, nuclear and solar energy.
• Provide significant incentives to the customers also to reduce their use of electricity both individual and professionals.

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UP is worse
Dear Sir, we folks in UP State feel lucky if we get electricity for 12 hours in a day, sometimes not even that. Even when it comes the voltage is fluctuating and appliances keep getting hosed. Municipal water supply is even worse. Feel yourself blessed in Maharashtra when compared to us. Hope we have some honest political leaders for the state who do WORK and not try to get votes based on Caste or Regionalism.
Raksha 2009-11-21

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