Massive power breakdown: Early reforms in energy sector need of the hour, says FICCI

NEW DELHI: Expressing concerns on a massive power cut in seven states today, the industry body has called for early reforms in the energy sector and attributed the power breakdown to the increasing demand-supply gap.

"Emerging demand-supply gap is the main reason behind this major breakdown today. There is a need for comprehensive review of the power sector. Further reforms in the sector are needed," FICCI Secretary General Rajiv Kumar said.

The electricity supply to Northern states was severely affected today with the failure of Northern Grid seven states affected with the failure are Delhi, Punjab, Haryana, Uttar Pradesh, Himachal Pradesh and Rajasthan.

In order to bridge the demand-supply gap, the Central government should encourage investments in power generation and transmission.

Recalling the situation of state electricity boards, he said “The condition of state electricity boards is also bad. They are in huge debt and are not able to buy power from private sector.”

Holding the similar opinion, CII Director General Chandrajeet Banerjee said that uninterrupted power problem is affecting all the industries in the country.

“We need to focus urgently on reforming power sector. There is a tremendous demand supply gap in the country. It has stretched a lot that is why such incidents are happening,” Banerjee said.