Jain also questioned the purchase agreements with the power discoms in which there can be "no negotiations".
"The power purchase agreements...Even if the (power) plant life is over, the agreement is still extended. There can be no negotiations in the power purchase agreement," Jain said.
The AAP government, which has often been at odds with the power discoms, has initiated their CAG audits.
Jain was speaking at a conference organised by the United Residents Joint Action of Delhi (URJA).
Also Read
"How can people be looted? First you colonise an area. The British came and colonised (the country). This is not possible today. Its difficult to control anyone physically in today's time. Today, there are necessary items, or items which have been made necessary...Electricity has become a necessity.
"Even the poor or rich cannot live without it. So people pay it quietly. These are not answers, but questions that I have," the power minister said.
"When we asked to bring down the rates of electricity, they said you can surrender power. I went back to surrender 2265 MW of power. I was told that Delhi will face electricity shortage. To this, I said this will be taken care by us, but just accept the surrender of power. If the 2265 MW could be surrendered whose cost is more than Rs 6 per unit, then rates of electricity will come down."
Attacking the Centre over the issue, he said, "The test is endurance of Delhi people is very high. So they need to be told about this (issue). Even people of Delhi are part of the nation. If you are working for the nation then do something for the people of Delhi as well.
Taking a dig at Reliance Industries, which was to provide gas to the plant, Jain said, "The reason they cite is lack of gas. The company which assured us of gas stopped providing us. The company initially said that it will provide gas at an international rate...16 dollars.
(Reopens DES 41)
Jain noted that India produces 2.7 lakh MW of electricity, but the maximum consumption is 1.4 to 1.5 lakh MW, so there is an excess of almost one lakh megawatt of spare capacity.
"This is the only sector where profit is minimum 16 per cent. The more inefficient work you do, you will be rewarded more. Because if you spend Rs 100 crore, then you will get a profit of Rs 16 crore. And if you spend Rs 200 crore for the same work because of your inefficiency then you will be rewarded," Jain said.
"The way this system is made by giving such incentives that you spend Rs 100 crore and show that you have spent Rs 500 crore. So you get Rs 80 crore (profit) in a year. People say that is the practice. People are a little hesitant to give actual proof, but the system promotes this. The system we made that 16 per cent guaranteed return is a flawed system which does not promote efficiency," Jain said.
"If per megawatt cost was Rs 2 crore 30 years ago then it comes to Rs 7 crore today. Because the incentive is if the cost is more. So no one has the intention to bring down the cost, invest more in technology.
"The technology, which was 50 years ago still prevails. We need to think about this system and we need to bring it under competition," Jain said.