Transparency, reduction in tariff needed in power sector: Jain

Batting for bringing down electricity rates, Delhi's Power Minister Satyendar Jain today said that lack of transparency in the sector was proving detrimental to the interests of consumers and development of the country.
Jain said things are "so opaque" and "intentionally" made complex that they cannot be understood and favoured opening up of the power sector.
The minister, who was speaking after inaugurating the 11th India Energy Summit hosted by Indian Chamber of Commerce (ICC), said that transparency is a "major issue" in the power sector.
"The power sector has been made complex intentionally and this is acting as a stumbling block in the development of the country," the minister said referring to varying rates of generation and cost of power in the country.

The minister alleged that more power plants were being installed in the country although the peak demand was less than generation because it helped vested interests in making money.
"India's capacity is 2.5 lakh MW and our peak demand is not even 1.5 lakh MW and still new plants are being installed. I feel there exists a nexus between politicians and crony capitalists," he charged.

He also objected to high rates of power supplied to the industries, saying it will not help them to compete with countries like China.
"There should be a price cap on power supplied to the industries at not more than Rs 5 per unit. The costliest power is provided to the industries and still they are expected to compete with countries like China," he said.

Power generation should go up but the tariff should also go down, he added.
"In three years we have not allowed power tariff to go up in Delhi. I have asked that the tariff should not be increased for ten years," he added.