The chronic power cuts of Odisha have become so commonplace now that they’ve acquired a state of normality. Besides the common folks, the MSME units are also hit particularly by this and incur heavy losses that can be mitigated if the State’s ailing infrastructure is streamlined.
Blackouts are particularly endemic in the remote areas of the State, where rolling power-cuts have long evaded any lasting solution and production units have become all too dependent on generators and other stop gap measures to keep running.
But such measures only cure the symptoms of a deeper malaise, not the cause itself. For example, diesel generator sets (DG sets) can only minimize, not completely prevent losses since by the time they come into operation, a significant amount of waste already takes place. Inverters, which may address this issue, are in more cases than not beyond the reach of MSMEs with limited financial means. What one needs is the unfettered supply of electricity to engender any long-term solutions.
Such lasting solutions are required especially when the effects of a power-cut can be more profound than they seem. For example, cash starved MSMEs cannot afford to repair the sudden breakdown of machineries due to abrupt power cuts and low voltage soon enough to resume their usual businesses. This hampers production and causes waste that could otherwise have been avoided.
Further, a trend peculiar only to Odisha is that at the very hint of a drizzle or on the forecast of bad weather, power is immediately cut off for hours many times a day. On the other hand, most major States even in eastern India have learnt to adapt to inclement weather conditions without resorting to multiple power outages. Such power cuts are especially cruel to the honest consumer who is sometimes threatened with the disconnection of electricity if he pays his bill even a day late.
But perhaps the biggest casualties of such incessant power-cuts are the plastic industries that depend on extruders. Some extruders can measure up to roughly 180 feet in length and can come to a grinding halt if power is cut off for even a few seconds. All the semi- finished products in the full extruder line have to be flushed back, the machine has to be restarted through about a two-hour long process and the accumulated lump of wasted raw materials has to be burnt and removed.
Subsequently, the heaters also have to be reheated to acquire the required temperature, thereby perpetuating the waste of time, money, labour and electricity.
This ordeal continues as the quality of finished goods is also adversely affected. Sometimes, the equipment even sustain irreversible damage and their sensitive electronic components have to be replaced. All the above losses culminate in the long-term sickness of the MSMEs when the account becomes NPA.
Regretfully, privatization of electricity distribution hasn’t turned out to be the saving grace people once thought it would be.
The loyalty of consumers through the timely payment of bills and higher tariffs has not been rewarded with an equally timely supply of quality power. Notwithstanding high revenue collections, grants, subsidies and additional loans, power distribution grids are perpetually dysfunctional in many cities and power supply companies continue to report huge losses.
These losses could be averted if power supply companies regularize, maintain and administer the distribution supply lines better.
It is little wonder then that in a survey released by the World Bank at the G20 summit convened about three weeks ago, India ranked a dismal 130 on the list. Among other reasons, the WB cited the lack of ease of doing business, especially for smaller business owners, as one of the reasons that was holding India back. Whilst the ease of doing business entails multiple elements such as being able to enforce contracts, trading across borders and cutting through bureaucratic quagmires, the most fundamental aspect of it is having access to steady electricity.
1. Uninterrupted and quality power supply must be provided to all MSME units.
2. It must be incumbent upon either the electrical company or the Government to provide backup systems to the MSMEs that have been deprived of steady power supply.
3. For pilferage of electricity and tapping of meters, strict penalties must be imposed on the offenders.
4. Similarly, damages must be paid to the consumer in lieu of the losses he bears because of the power interruptions. Such damages may be calculated on the basis of the number of power interruptions and their duration.
5. Underground infrastructure for power distribution must be laid as soon as possible and until then, strict maintenance of the overhead lines, transformers and substations should be ensured.
6. Alternatives to the conventional sources of power such as solar, nuclear or wind energy or bio gas must be optimally harnessed. Although the Government is making strides along these lines, a greater sense of urgency and a more concerted attempt are required.
7. For the installation of DG sets, no fees are to be charged and the power generated by the DG set so recorded should be compensated per unit cost to the consumer by the electrical company or the Government and not vice-versa.
8. The onus to provide the electrical meter and conduct its calibration must be upon a neutral party such as the Government and not by the power supply company.
9. Creating widespread awareness regarding installation of earthing systems and prevention of fires induced by short circuits and lightning. Whilst immense emphasis was placed in the G20 summit on various socio-economic issues such as income inequality, poverty and the interests of large corporate houses, not enough was done to highlight the problem of erratic and poor quality power supply. Ensuring regular power supply through strict vigilance, administrative rigour and the adoption of sustainable measures could prove beneficial to the millions of small businesses that form the backbone of India’s economy.
(The writer is Working Chairperson, EFCAI, former Chairman, Odisha Assembly of Small and Medium Enterprise. efcai12@gmail.com)