K'taka buys power from outside, burdens citizens

BENGALURU: The last time a power plant was built in Karnataka was way back in 2008, with its Udupi plant. Since then many announcements to set up power plants have remained only on paper. Result: In 2013-14 alone, the state government spent Rs 3,194 crore to buy power from mostly outside the state. But the deficit is still about 1000MW .Experts point to an unholy nexus between the government and private power producers that's perpetuating this crisis in the state.
"The government is willing to buy power because the private generators have now been allowed to sell power at dynamic prices to consumers, specially escoms and industries. Every year, 16% of the wind energy generated and pumped into the grid is privately owned. The solar and cogeneration sources are also monopolized by private players. But the state-owned generators are forced to sell power at nominal costs,'' they said. Thermal power was bought by escoms at Rs 3.42unit in 2014 and hydel at Rs 3.84, making it a constant loss-making cycle.
MG Prabhakar, energy expert and member of FKCCI, said, "Bescom has spent Rs132 crore in 2014 for short-term power purchase agreements from sources outside the state. In the past five years, the state has spent thousands of crores to buy power. That money could have been spent on more generating units and would in the long run not burden the consumer. Governments must disown the power sector and privatize it."
Experts say populist policies have aggravated the crisis. From giving free power to farmers to cross subsidizing power in urban areas, to not repairing power plant units on time has ruined the finances of power corporations.