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Re: Enron India Problem



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"Gautam Sampath Kumar" <gautamsk@hotmail.com> wrote:
>
> >Is it more expensive than other new power plants of the same size and
> >design? How does the price compare with the new plants that are coming
> >up in
> >California?
>
>First of all,why compare power costs in california to what it is in India.
>Why do we need these power plants, when Indian companies are willing to
>supply power at 2/2.20 per unit.

Could you substantiate your claims. Which companies are offering power at 
Rs. 2.20?

I think everyone agrees that India suffers from an acute power shortage 
(i.e. generation) in addition to the T&D losses.  How many states in India 
have uninterrupted power supply? I agree that mistakes were made.  The T&D 
issues should have been addressed before inviting investment in power 
generation.  The problem is that the T&D problem falls under the 
responsibility of the States, while generation is with the Center.  If 
states do not initiate power reforms for political reasons, what can the GoI 
do?  Corruption is not neccessarily the only explanation.  It is possible 
that the GoI invited investment in power generation believing in good faith, 
that the States would undertake quick reforms.

Have a look at the two links below for a detailed analysis of the problem, 
and let me know if you agree with the current direction of power reforms.

http://www.the-week.com/21feb04/events2.htm

http://www.hindubusinessline.com/2001/01/08/stories/14085644.htm


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