Will India Benefit From An Integrated Power Ministry

With the new BJP-led NDA government at the center,  the Indians are expecting several structural and economic reforms which would benefit the country in the long run.  The Indian stock market is recording all-time highs on the prospects of a strong pro-business political ruling for the next five years. Expectations of the Modi government enacting strong pro-growth measures is supporting the overall market dynamics.

One of the few proposed reforms in the power sector is the merger of the Ministry of New and Renewable Energy (MNRE) and the Ministry of Power (MOP) to form one integrated ministry. This move will be targeted towards balancing of power and common transmission infrastructure between renewable energy and conventional sources of energy.  Another major issue that this ministry could combat being one, is tackling the delay of payment from the Discoms. Since the MNRE is not in a good position to deal with the non-payment by Discoms, a combined ministry could help to resolve this problem. The delay in the payment has been plaguing both conventional and non-conventional power generation since long.

Also, read Is Solar Here to Disrupt the Utilities?

On the issue of non-payment by Discoms, minister RK Singh said “It is a matter of worry, this has been flagged to me. It is a problem which is true not only for renewable, it is true also for conventional power, we have thought about this in the past…and we will bring in some system which will ensure that they will be paid.”

Source: Hindu Business Line

However, the above is still a suggestion for the newly appointed Minister of State for Power and New and Renewable Energy, RK Singh, and has not gathered much momentum to become a formal proposal as of now. The idea of an integrated power ministry is nothing new and exists in many countries. You might also like to read the List of Top Power/Electricity Companies/Utilities in India