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Tuesday, January 12, 2016

Ujjwal Discom Assurance Yojna -- Chartered Accountant's approach to Uninterrupted power supply

Mr. Piyush Goyal is a Power minister in Narendra Modi's government.  He is Chartered Accountant by profession.
Please refer to Time of India news dated 12 January 2016 about his approach to Uninterrupted power supply -- Ujjwal Discom Assurance Yojna. This article shows limitations of his approach.
Mr. Goyal is suggesting a MoU to be signed by central government, state government and distribution company.  This MoU would turn each area in the network - called 'circle' in industry parlance - into a separate business unit.  The discom boss of the area, either an executive or superintending engineer, would be responsible for following:
  • Meeting supply target
  • Maintain and strength the distribution network to reduce down time and losses
  • Check theft

Meeting supply target

Discom boss of the circle is not expected to generate electricity.  He would probably have more than one sources to buy electricity.  However, peak demand timings would be more or less same for all circles. Discom bosses of each circle would demand more power at the same time.  Some circle would not get electrical power as power generation is limited.  It cannot meet the peak demand of electricity.
It is incorrect to blame Discom boss for it as he is helpless. Number of units generated are not just sufficient to meet demand.
Similar strategy is used in corporate world.  Instead of solving problems at top level, people at operational level are expected to address it.

Maintain and strength the distribution network

You don't need a new scheme for it. It is a routine activity of distribution companies.

Check theft

You don't need a new scheme for it.  It is a routine activity of distribution companies.
 
 
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