Gujarat outruns industrialised states on power front with zero deficit

With power deficit of 0.1% and 0.3%, Maharashtra and West Bengal respectively round up list of top three best performing states

Among India’s 20 major states, performance of Gujarat on power front seems to be the best as it has been able to achieve zero per cent normal power deficit and nil peak power deficits in 2013-14, according to a recent Associated Chambers of Commerce and Industry of India (Assocham) study.

A study titled ‘States Emergence: A comparative analysis ofgrowth and development,’ conducted by the Assocham stated that with power deficit of 0.1 per cent and 0.3 per cent, Maharashtra and West Bengal respectively round up the list of top three best performing states that have been able to achieve the least normal power deficit, while power deficit for all-over India stood at 4.2 per cent in 2013-14.



“Gujarat, Madhya Pradesh, Uttarakhand and Haryana have got nil peak power deficit thereby indicating that demand generated during peak hours by these four states is being fully met by power supply,” further noted the study prepared by the Assocham  Economic Research Bureau (AERB).

Clocking a compounded annual growth rate (CAGR) of about 18 per cent, total outstanding investments in power sector attracted by Gujarat had increased from Rs 2.1 lakh crore as of 2007-08 to Rs 5.5 lakh crore as of 2013-14.

“Gujarat had even garnered highest share of 11 per cent in total outstanding investments worth over Rs 50 lakh crore attracted by power sector across India as of 2013-14 and the state’s share had increased from 9.4 per cent in 2007-08 in this regard,” said Bhagyesh Soneji, chairperson of the Assocham Gujarat Council. Both Gujarat and Maharashtra have been able to improve their power deficit positions by 16.2 per cent points during the period 2007-08 and 2013-14, which shows their respective improvement in power scenario, noted the Assocham study.



“As demand exceeds supply, most of the states in India continue to face severe peak and energy shortages, besides inefficiencies in power generation, distribution and end-use systems further plague these states, thus an immediate policy focus needs to be laid upon improving these particular aspects,” said D.S. Rawat, national secretary general of Assocham.

Environmental approvals, land acquisition issues, difficulties faced in sourcing the coal supplies, inadequate connecting infrastructure to the grid, inability to raise tariffs in proportion to that of input costs and bureaucratic delays are certain key factors restricting growth of power sector in India, highlighted the study.

The study has stressed that state governments should introduce and ensure effective implementation of union government’s programmes in terms of physical infrastructure development in the country and they should also initiate supporting programmes together with Centre's efforts especially for robust development in rural areas.