Ignored year after year and hardly ever getting any mention, the struggling energy sector was up for discussion in the Nagaland Legislative Assembly on February 18. (Morung File Photo)
Morung Express News
Dimapur/Kohima | February 18
The Nagaland state government appears to have finally taken notice of the energy sector. Ignored year after year and hardly ever getting any mention, this struggling sector was up for discussion in the Assembly on February 18.
During the discussion, Chief Minister Neiphiu Rio, took note of the losses being incurred by the Power sector, terming it as “no longer acceptable.”
The CM said that the revenue collected by the Department of Power, Nagaland (DoPN) has been less than 50 percent of the (energy) purchase cost since 2010-11.
“Against an amount of Rs 407 crore spent on power purchase during 2019-20, the revenue earned was Rs 159 crore only. During the current financial year, against power purchase of Rs 452 crore, we are expected to get about Rs 175 crore only,” the CM disclosed, while remarking, “This shows how serious the problem has become.”
As reported time and again on the state energy sector by The Morung Express, government allocation and revenue collected has consistently declined over the past 10-15 years. As per a conservative estimate, Nagaland has spent around Rs 2800cr on power purchase during 2013-19, while the revenue collected during the same period works out to around Rs 1340cr, implying a loss of around Rs 1480cr.
The CM reminded that the spending on power would only increase over time. While stating, “We have too many consumers who are not paying for the power they consume,” he also reminded that all VIPs, all government officials and government departments should make a habit of paying bills, including electricity, water and telephone bills.
Revoking electricity Communitisation
The CM called for a relook on the Communitisation of electricity. According to him, Communitisation of electricity has been a failure and called for removing electricity from the Nagaland Communitisation of Public Institutions and Services Act, 2002 as it conflicts with the Electricity Act 2003.
“As per section 55 Clause 1 of the Electricity Act 2003, all the consumers are to be mandatorily metered as electricity is a measured commodity. Therefore unlike the provisions of communitisation, every household should have individual meters. Under the present circumstances, there are two conflicting provisions and it is not possible to effectively manage electricity revenue,” he said.
To address the conflict between the two Acts, he maintained that an appropriate decision is required to remove electricity from the ambit of Communitisation.
He added that a number of reforms are in process, which includes “outsourcing” electricity metering, billing and revenue collection “so that we can bring in private sector efficiencies in this area and improve collection of power dues.” He said that it can be implemented starting with a few districts and gradually extended to all the district headquarters.
Implementing pre-paid electricity is also another bid to improve revenue collection, he said, while informing that installing pre-paid metering for 10,000 consumers in Dimapur and 9000 in Kohima are already in an advanced stage.
“I would also like to urge the Members of the House to take it as our duty to educate the public that as responsible citizens they have to pay for the electricity that they consume. I also feel it is time for us to have a relook at the communitisation of the power sector,” the CM urged.
19cr for power sector
In the Plan outlay for 2021-22, the power sector has been allocated Rs 19.7cr. The Distribution & Revenue wing has been given Rs 7.7cr, of which Rs 5.2cr lakh is earmarked for village electrification.
The CM in his Budget speech said that the DoPN is focusing on construction of new power stations, expanding coverage and improving transmission and distribution networks to reduce losses.
5cr for hydro plant
The Transmission and Generation wing has been allocated Rs 8cr. As per the CM, of this, Rs 5cr is for setting up 2.5 MW Hydro Electric Project at Duilumroi, Peren.
The Department of New and Renewable Energy has been provided Rs 3.5cr. Of this, Rs 2.5cr is earmarked for a Power Plant at Ganeshnagar, Dimapur. The Electrical Inspectorate has been provided Rs 50 lakh for the Green Village Initiative.
