Increase in load shedding will severely hit Maharashtra's Economy, says IMC.

The green signal waved by the Maharashtra Electricity Regulatory Commission ( MERC) for sharply increasing load shedding in rural Maharashtra from the existing level of eight hours to 12 hours and also considerably higher load shedding in urban areas will severely erode the State's economy, which has been struggling to stabilize itself in the past couple of years, according to   Rajesh Kapadia, IMC President.

In a press statement issued in the wake of MERC' s action on January 11, Rajesh Kapadia said that the peak-time deficit of about 4,500 MW during the day and the night time deficit of about 1,000 MW was indeed a precarious situation, and difficult for adjustment. The gap between the day time and the night time deficits was as wide as 3,500 MW.

"It may be possible to persuade major power consuming sectors to switch to night time operation, wherever possible. For instance, agricultural needs can be met fully by running pump sets at night, minimizing the rural consumption during the peak hours by confining it mainly to the domestic sector as well as for some small industries.

"Even the large industries located at the urban and semi-urban centres have scope for reducing power consumption by proper planning, in-house generation through diesel sets, and also switching to non-conventional energy sources such as solar and wind energy. Maharashtra has potential to set up wind   mills enough to generate about 3,500 MW, " he pointed out.

The assertion of the MERC a couple of days ago at the Indian Merchants' Chamber that there was no hope of any major improvement in the power situation in Maharashtra in the next four years was very disturbing, though frank and realistic. However, its recommendation that large industries should also voluntarily plan for effecting 30% reduction in their consumption levels must be seriously considered, he said.

"The Chamber is at a loss to understand why the situation was allowed to be drifted by those in charge of running the State's affairs. It is common knowledge that new power projects take a minimum of about five to seven years lead time between the project approval and commissioning in our country. It is also no secret that the annual increase in demand for power is between 10% to 15% not only due to natural growth, but also due to government's new policies to reach power to every household in rural areas. The process of planning and implementation of new power projects has ground to a halt following the debacle of Dabhol project," Kapadia said.

Even at this late hour, he appealed to the powers that be in the State to speed up revival and recommissioning of the first phase of the Dabhol project and also to set in motion processes for its second and third phase expansion. Besides it must also put in place schemes for tapping non-conventional sources expeditiously and some incentive schemes for conservation and saving of energy.