'Cheap power to ind will accelerate GDP'

An 'Open Access System' will help the manufacturing industry in purchasing power at cheaper rate from producers, there by assisting the growth of Gross Domestic Product (GDP) in excess of 10 per cent per annum, according to power sector experts.

Though the Government of India has implemented the 'Open Access System' (wherein industrial power consumers can purchase power directly from the producers using the state grid), the tariff has not been fixed.

"The charges to be levied are still under debate. The national average of power tariff for industrial consumers is around Rs 4 per unit, higher than China (Rs 2 per unit). Under the Open Access System, the tariff can come down to Rs 3.50 per unit. This will make a lot of difference to the manufacturing industry sector," contended Bhoruka Power Corporation managing director S Chandrashekar.

He was addressing a session on infrastructure bottlenecks (power sector) at a seminar organised by Indian Institute of Materials Management here recently.

According to him, frequent power outage had resulted in overall loss of 1 per cent GDP. "The Centre has envisaged addition of 100,000 mw of power to the national grind under the 11th and 12th five year plans. But that will be still short of the requirement. The transmission and distribution losses should be brought down to ensure efficiency," he stated.

Chandrashekar pointed out that the 'Open Access System' was part of the power sector reforms.

"But some of the issues have still not been addressed. If we have to compete with China, power sector reforms are inevitable," he added.