After power shutdown, RIL shuts up
Not a single word from RIL after terse power shutdown email of April 18
Goa’s investor confidence hit massively
Tense industry looks at Genset power
Goa govt power major option, but has reliability and distribution challenges
AJIT JOHN
ajit@herald-goa.com
VERNA: A leading voice of Goa’s industry and a member of CII’s leadership team Atul Pai Kane reiterates that the fallout of the Reliance Power’s “arbitrary” shutdown of private power to consumers perfectly: “It has shaken the confidence of industry. It will affect Goa’s industrial climate severely.” The major industry blackout that was averted by the Goa government stepping in to supply power to 86 industrial units, was a crisis in the making. And it’s still not over. Major power and safety dependent units including international majors are on tenterhooks with the Power Purchase Agreement with RInfra, the company of Reliance Power getting over on August 14, this year. The enormity of the problem has been felt by the industry but its aftermath could singe the industrial climate of Goa, with the government having to face the brunt of the discontent of major international companies, for no direct fault of its own. Now even as it reaches out to Goa Inc and international companies to switch to Goa government power, the government is in no position to set up alternate distribution networks by August 14.
While Industry appreciates Goa government’s intervention to save the power blackout, it is extremely apprehensive of RIL short changing them by using the excuse of a technical problem to shut power. Angry captains of Industry have termed RInfra’s action as arbitrary. Atul Pai Kane, a senior CII leader said, “Yes there has been absolutely no communication from RIL.
Major companies have been getting ready to switch to government power or use gensets (which ironically is Pai Kane’s business). This action is too arbitrary. All of us are shocked that RIL didn’t just threaten, but actually stopped power supply with less than a day’s notice”.
What is critical to this understanding is that while its PPA with the government runs till August 14, its agreement to supply power to its customers does not end on that date. Therefore, the panic attacks happened because of the fear that RInfra would suddenly stop power distribution post August 14.
It took a massive negotiating coup and the relationship of the leadership of the CII with Chief Minister Manohar Parrikar for the Government of Goa to step in. Senior Industrialist Atul Pai Kane cut short a trip out of Goa and rushed back from the airport to contact the Chief Minister. CII vice chair Parag Joshi stepped up to lead the fight. The quick coming together of industry and government on an issue of power is perhaps the only positive move that has emerged from the crisis. Industrialist Blaise Costabir, who is on the GIDC Board said, “The government has been extremely supportive and if not for the intervention of the Chief Minister and Power Minister on Good Friday, we would have been without backup power. Reliance sent an email on Friday knowing on Thursday that they were going to shut off power for a month.”
But it is far from over. Here’s why.
— Of the 30 MW of power that RIL actually generates, roughly 17 MW of its plant load factor (a measure of average capacity utilization), the government buys more than 50 per cent. Industry is aware that RIL will not supply private power without the government order in place.
— There are more than 40 proposals from companies wanting to switch to government power because of the fear of RInfra power snapping, even at the risk of depending on unstable and non-reliable government power.
— The existing RInfra power distribution network is as follows. From RInfra’s Sancoale unit, power is distributed to the Verna sub-station from where it goes to Syngenta which is a 6 MW consumer to Kundaim, Marcaim and back to Verna through a ring loop which supplies all consumers. The government has not yet promised industry if this network loop will be used by the government once it begins to supply power. Moreover, the cost of switching over to government power entails new infrastructure costs of laying cables and power transmission channels which could cost anywhere between Rs 20 to 25 lakh for a small unit to several crores for massive conglomerates such as Sanofi or Syngenta.
