This refers to the report "Coal auction: Power firms staring at losses, demand crisis" (April 12). The fundamental problem with the energy sector is the buying power of the ultimate customer. This shows up finally in the mountain of losses and debts carried by the distributing companies. But for them, being government owned and enjoying sovereign status, already make them non-performing assets, and their auditors would have no option but to question their ability to qualify as 'going concern'. The problem might get worse as new nuclear and solar power plants begin to add high-cost power to the basket.
This requires a new approach to utilise the gaps now existing in low thermal efficiency, low plant load factor and high transmission and distribution (T&D) losses. Scrapping ageing and polluting plants and putting new ones in the same location but with high efficiency, tight design and less polluting features will also solve the problem of acquiring land. India can easily add another 30-40 per cent to power availability by this method coupled with reduced T&D losses and low cost of energy, without which India's ability to become a manufacturing giant will remain a distant dream.
P Datta Kolkata
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