 "Piyush Goyal")
A tap on the shoulder got seven government departments together last Tuesday. Union Minister for Steel, Mines and Labour Narendra Singh Tomar, sitting next to his junior colleagues Piyush Goyal and Prakash Javadekar at a Cabinet meeting, put the informal tap to good use. "There were some issues between the two of them and did not concern my departments. But I gave my two bits of advice and played the role of a squirrel," Piyush Goyal, minister for power, coal and renewable energy, tells Jyoti Mukul & Sudheer Pal Singh. Edited excerpts:
The power sector, along with coal, has been facing woes. Haven’t you inherited problematic ministries?
It is all in the mind. Let me borrow a phrase from my prime minister---whether a glass is half full or empty; I have inherited the glass half full. Certainly, there are challenges. The sectors have been plagued with problems and allegations of all sorts, which are now in the jurisdiction of the Supreme Court. The sector has also been maligned to be insensitive to consumer’s needs and aspirations. I am not intimidated by challenges. If we work with sincerity of purpose, honesty and a commitment to serve the consumers of power, I am fairly confident we can quickly create a situation where India has 24x7 quality power for every home.
What sort of measures are you taking to bring about changes?
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When I took charge on May 27 and was briefed by officials, all three ministries put forward issues related to the environment as if that was the only problem. I called up environment minister Javadekar and he asked me to come over. But I decided to meet him a day later, after getting a list of issues from officials. I did not want to take individual cases related to companies. In about an hour and a half, we resolved 80-85 per cent of the issues. We tried to work around problems related to framework issues.
Doesn’t the Centre have limited scope for intervention, as power is a state subject?
In the federal structure, I have the ability to only persuade states. But the public has now started demanding results. The election results have demonstrated this. Now, the public will demand action and the states will have to follow.
What is being done to avoid a power crisis of the kind seen in Delhi recently?
We are working on a plan to strengthen the entire Delhi power network. We are trying to fast-track the development of additional transmission lines in Delhi. It may involve some inconvenience for people in the short run. We are trying to meter every home to plug power theft at the distribution end.
Losses in the distribution sector have been a major problem and lack of timely revision in tariff has also been an issue. Are you in favour of revision?
We have to give facilities to the public; only then can we go to the public. Efficiency and honesty will help bring down costs. Besides, whatever losses are being accumulated in stalled projects, their burden will ultimately be loaded on to consumers. I want to give cost-effective service in a timely manner by implementing projects to ensure round-the-clock power for them. I think most problems can be resolved if we work efficiently and with honesty. Once this is achieved, the need for tariff revision will be reduced.
But tariff is not in your hands. It is in the regulatory domain.
Yes, but what we can do is to improve efficiency of coal supply. I am thinking of formulating some proposals to create a robust transmission network. There is shortage of power in the South and the North, even as there is surplus in other regions. Some states have separated agricultural feeders to improve distribution. I want to replicate this nationally.
Are you going to continue with the financial restructuring package (FRP) for distribution utilities, rolled out by the United Progressive Alliance government?
I have studied the FRP. In reality, it was an incomplete and delayed scheme. It was announced in April 2012, but operationalised in October 2013. A restructuring plan is bound to fail even before it begins, owing to the burden of the 18-months delay. So, I think the government’s duty is to take action as soon as possible. My aim is not just restructuring or band-aid solutions.
On the generation side, don’t you agree there is over-capacity, with plants stuck? Yet, capacity is being added?
That’s correct. We have to focus on starting stalled capacity as soon as possible with adequate fuel and ensure the power generated is evacuated. Also, adequate distribution network for last-mile connectivity is essential before planning new projects.
There is stranded gas-based capacity, too. How do you plan to address shortage on that front?
We are awaiting final pricing decisions on gas before taking a holistic view of the gas sector. Gas has an important role to play. For instance, it can be used to create spinning reserve.
Your government has laid a lot of focus on the development of rivers, but many hydro power projects have been scrapped. What is your plan of action for the hydro sector?
We would certainly like to protect the environment and ensure there is perennial flow of water, particularly in the case of mainstream rivers. Once these two objectives are met, we would like to expand hydro power capacity.
How do you plan to revive investment in the sector?
There is plan to set up a dedicated energy-focused fund. The proposal has been discussed and I have set up an informal group of bankers and financial experts to explore this in detail. I am sure they will come up with a concrete idea to help expand the sector. In a country of 1.25 billion people, the fund could also have a large size. Many companies require last-mile funding, which may not be available as debt, but may require some equity support. Also, some companies may require some mezzanine support, owing to delays and time and cost overruns.
