By Mitul Thakkar, ET Bureau | 4 Mar, 2014, 10.20AM IST
NEW DELHI: Gujarat's stridesBSE 6.51 % in improving power supply is increasingly taking a political hue. It's not just in Narendra Modi's rallies, where he sarcastically asks people in UP if they are getting regular supply and proudly narrates how villagers in his state have continuous supply.
Power minister Jyotiraditya seems to blow his fuse when he is called for functions where utilities are rated, and top performers turn out to be from Gujarat. For the second year in a row, all four state-run distribution companies (discoms) under Modi's government emerged as top performers in the appraisal carried out by the power ministry.
The Modi government is not amused. "It is disheartening that the UPA government and power ministry are working to protect their political interests instead of promoting best practices in the sector. Instead of acknowledging the success of Gujarat's power sector, Scindia has once again showcased his irresponsible behaviour by snubbing our officials," Gujarat's energy minister Saurabh Dalal told ET.
The ratings, which are meant to help lenders evaluate risks but also have the potential to add to the ammunition of BJP's prime ministerial candidate, will probably be released after the general elections as Scindia himself will be busy with the campaign, officials who were involved in the rating exercise said. "We have been directed by power ministry to inform you that the proposed function for release of Integrated Rating of State Electricity Distribution Utilities by Minister of State for Power on February 20, 2014 at The Ashok Hotel, New Delhi has been postponed," Power Finance Corp, which was organising the event, said in a communique to discoms, but was silent about the reasons for cancellation. Scindia and his office did not respond to ET's queries.
In March last year, when the power ministry launched the ratings power minister Jyotiraditya Scindia abruptly left the venue without felicitating the officials of Gujarat discoms, as announced.
During his speech, Scindia also refrained from naming the best utilities. Upset with development, Dalal crticised Scindia for his behaviour on the floor of state assembly. This year, in early February, power ministry's joint secretary BN Sharma sent invitations for the event to 39 state utilities, which were evaluated by rating agencies Care Ratings and ICRABSE -0.33 % for the second time.
The event was to include presentations on the best practices adopted by a few utilities, including one from Gujarat.
Discoms' representatives who were preparing to visit Delhi had to cancel their plans. Gujarat was sending at least half a dozen discom officials to the event that could have earned accolades for Modi government.
Rating agencies not only looked at the capabilities of utilities to meet their financial obligations on time but also evaluated their operational efficiencies based on past three years' data.
These ratings are used by banks and financial institutions to understand the risks associated with lending to the utilities and assess their creditworthiness easily.
"The integrated ratings, based on assessment of performance on a range of key parameters, enable utilities to build on their strengths and work on areas requiring improvements so as to achieve higher operational efficiency and financial self-sustainability," read the invitation from power ministry.
http://economictimes.indiatimes.com/articleshow/31362690.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
NEW DELHI: Gujarat's stridesBSE 6.51 % in improving power supply is increasingly taking a political hue. It's not just in Narendra Modi's rallies, where he sarcastically asks people in UP if they are getting regular supply and proudly narrates how villagers in his state have continuous supply.
Power minister Jyotiraditya seems to blow his fuse when he is called for functions where utilities are rated, and top performers turn out to be from Gujarat. For the second year in a row, all four state-run distribution companies (discoms) under Modi's government emerged as top performers in the appraisal carried out by the power ministry.
The Modi government is not amused. "It is disheartening that the UPA government and power ministry are working to protect their political interests instead of promoting best practices in the sector. Instead of acknowledging the success of Gujarat's power sector, Scindia has once again showcased his irresponsible behaviour by snubbing our officials," Gujarat's energy minister Saurabh Dalal told ET.
The ratings, which are meant to help lenders evaluate risks but also have the potential to add to the ammunition of BJP's prime ministerial candidate, will probably be released after the general elections as Scindia himself will be busy with the campaign, officials who were involved in the rating exercise said. "We have been directed by power ministry to inform you that the proposed function for release of Integrated Rating of State Electricity Distribution Utilities by Minister of State for Power on February 20, 2014 at The Ashok Hotel, New Delhi has been postponed," Power Finance Corp, which was organising the event, said in a communique to discoms, but was silent about the reasons for cancellation. Scindia and his office did not respond to ET's queries.
In March last year, when the power ministry launched the ratings power minister Jyotiraditya Scindia abruptly left the venue without felicitating the officials of Gujarat discoms, as announced.
During his speech, Scindia also refrained from naming the best utilities. Upset with development, Dalal crticised Scindia for his behaviour on the floor of state assembly. This year, in early February, power ministry's joint secretary BN Sharma sent invitations for the event to 39 state utilities, which were evaluated by rating agencies Care Ratings and ICRABSE -0.33 % for the second time.
The event was to include presentations on the best practices adopted by a few utilities, including one from Gujarat.
Discoms' representatives who were preparing to visit Delhi had to cancel their plans. Gujarat was sending at least half a dozen discom officials to the event that could have earned accolades for Modi government.
Rating agencies not only looked at the capabilities of utilities to meet their financial obligations on time but also evaluated their operational efficiencies based on past three years' data.
These ratings are used by banks and financial institutions to understand the risks associated with lending to the utilities and assess their creditworthiness easily.
"The integrated ratings, based on assessment of performance on a range of key parameters, enable utilities to build on their strengths and work on areas requiring improvements so as to achieve higher operational efficiency and financial self-sustainability," read the invitation from power ministry.
http://economictimes.indiatimes.com/articleshow/31362690.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
By Mitul Thakkar, ET Bureau | 4 Mar, 2014, 10.20AM IST
By Mitul Thakkar, ET Bureau | 4 Mar, 2014, 10.20AM IST
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