Does india inc need a refreshment break


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Frequent power cuts result in huge losses in any utility. A second thought on this problem...

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Does india inc need a refreshment break

  1. 1. Does India Inc. Need a Refreshment Break?
  2. 2.  When we are doing something, we get tired after some time. Taking a break for refreshment is always better to reach our goals in a faster way.
  3. 3. Consider this… There are 9 factories capable of producing 10 Ton product each. Total Production will be 9 X 10 = 90 Tons If we need more production, we decide to have another factory, say of 10 Tons.
  4. 4.  But,power available is limited. As a result, when this new factory is started, 10% power shortage is observed by all the mills. So total production remains the same i.e. 10X9 = 90 tons.
  5. 5.  To make things worse, another factory is set up in the area. This time power cut is increased to 20%. Thus, installed capacity increases, but the production remains almost the same 11X8=88 Tons.
  6. 6.  But,in all this exercise, who is the winner? The mills, who are getting less and less production? NO. The Government, who is getting lesser or almost fixed revenues? NO. Who else, then?
  7. 7.  Arewe working just to make factories, and no increase in output?
  8. 8. Another example… Suppose you are going from Delhi to Mumbai by road, and during the journey, driver tells you that the car is out of petrol. The next petrol pump is 40 km ahead, or the one you left behind was 5 km back. What will you prefer!
  9. 9.  You may say that it is the driver’s fault, who should have keep an eye on fuel level during the journey. But, now you must go back to refill the fuel tank. Do you think any other option is available? No! We must accept that at times backward movement may become necessity.
  10. 10.  Exactly, the same situation we are facing now a days. There is a power cut every day, sometimes twice a day. There are many factories, where startup after the power is resumed takes 30 minutes to one hour. So, after power is resumed, they get no production in this duration.
  11. 11. Well…. There may be various excuses, elections, board examination, poor rainfall, festival demand etc. etc. But….
  12. 12. But, the fact is… WE ARE SUFFERING “ AN ACUTE POWER SHORTAGE”.
  13. 13. Is it not the time to consider-A ban on all new energy intensive industries is implemented for at least 5 years. – This may also give a breeze of fresh air to the existing mills suffocating due to power crisis.
  14. 14. Also,All new electrical connections should be released only if they are ready to pay at least double the normal tariff at least for first 5 years. – The extra revenues may be used for setting up new power projects.
  15. 15. The message is We don’t have surplus power. We just cannot afford to allow more and more consumers to get the desired quantity of electricity.
  16. 16.  Didn’t China did the same thing by imposing a ban on its players participating in all international sports events. But, the whole world got stunned after seeing the medals grabbing performance of its athletes.
  17. 17. Any other solution?