Power outages cost Indians $6.2 Billion a year

Power outages cost Indians $6.2 Billion a year

Wednesday, 26 August 2009, 02:41 Hrs   |    6 Comments
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Chennai: Indians are spending around $6.2 billion (30,000 crore) every year to run their power back-up systems to escape frequent outages, according to a study by power genset maker Wartsila India.

The erratic power supply in the country has helped the power back-up equipment industry - inverters, batteries and small gensets - grow to the present size of around $20.8 Billion (100,000 crore).

"The real cost of power that Indians pay is far higher than what they think. The diesel used to power gensets is subsidised. Further, the quality of power from those equipment is also poor," M. Rajagopalan, Vice-President (southern region) of Wartsila, told reporters while releasing the study here.

With the money people have already invested for buying power back-up systems, the country could have set up power plants with a capacity of 25,000 MW, he said.

To find a solution to the power woes, the government should go for rapid capacity build-up. Resources for this could be raised by charging a "reliability surcharge" of 50 paise per unit on consumers, Rajagopalan said.

"The surcharge is far less than what people spend on their power back-up systems," he added.

The study covered 1,500 respondents across 21 cities.
Source: IANS
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Reader's comments(6)
1: why are you spend you extra money? say to us we are solution of POWER-CUT best product on competitive price.

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Posted by:Vinay Gupta - 27 Aug, 2009
Diesel fuel causes very unhealthy combustion products and inhaling that smoke or the fuel vapors is dangerous. We should address this problem of frequent outages and increase energy generation using alternate fuels and clean and sustainable technologies.
Posted by:Major(Retd) Rudra Rebbapragada - 26 Aug, 2009
3: Can't this whopping amount be used in some way to create right power infrastructure?
Posted by:Girish - 26 Aug, 2009
Right, only if the Govt has sweet wish to do otherwise who will appease the producers of inverters, batteries and small gensets.
AK Aggarwal Replied to: Girish - 27 Aug, 2009
5: Mr. Rajagopalan said true, I agree with him. But I strictly opposses his professional view. First of all, if the people buying the Power back system these are their individual choice, and Indian people very well known the fact that Govt. is unable to produce pure uninterrupted power supply. We need continous power in hospitals, offices, Hotels, and obviously in house. Wartsila is still producing Genset, So, Why they adopted this diesel fuel equipment. Why they afraid by seeing the bussiness of Back supply equipement producers. Really its shamefull view's by the V.P of Wartsila. Be possitive Mr. Rajagopalan.
Posted by:SANJAY - 25 Aug, 2009
You need to be positive and say yes Govt can save power by apprehending the culprits of power theft and reducing transmission losses and stopping free distribution of power for economic use and by installation of nuclear power plants like working in other countries. US has grudge against India being progressing so inciting Pakistan for infilteration of terrorists like KASAB to stop its progress so adopting double policy for India.
AK Aggarwal Replied to: SANJAY - 27 Aug, 2009