A common hurdle faced by India
towards its growth factor is power outage. India is among the fastest
developing countries of the world and so,
it’s dependent upon the electricity sector to harness its growth. India is
the third largest electricity producer and fourth largest in terms of
consumption in the world.
(Source) But
unfortunately, an estimated 27% of the energy generated either gets lost or
stolen during transmission. The peak supply falls short among 9% of the
population. And what’s worse, frequent power outages last for as long as a
whopping 10 hours. One of the biggest power outages that occurred in India was
in the year 2012 when three grids i.e. northern, eastern and north-eastern had
collapsed. This incident turned 22 states of the nation in shambles. And, this
blackout wasn’t the first in that scale. The northern grid of India had fallen
back in the year 2001, and the north-eastern grid blackout occurred in
2003. The ripple effects of these
incidents compelled the Indian government to take instant corrective measures.
Meghalaya, Andaman & Nicobar,
Bihar, Tamil Nadu, Uttar Pradesh, Andhra Pradesh, Jammu & Kashmir, are
among states that are most affected due to power cuts. Power shortages are more
prominent in Odisha, Tamil Nadu and Andhra Pradesh while Maharashtra, Gujarat
and Karnataka face minimum problems vis-à-vis electricity supply.
Power shortage has been
among the most prevalent issue in India’s growth track. In fact, since 1951, India
has missed every annual target to electricity production capacity, as per a
Bloomberg report.
How do power outages affect the
people?
§ Agriculture
is a dominant factor in people’s lives in the rural areas with over 70% of the
rural population depending upon
electricity for irrigation,
storing of allied products and sowing. Impending power outages affects rural
households staggeringly.
§ Transportation
system in urban life depends to a great extent upon electricity. From train
services to automatic signaling system, electricity plays a major role. Power
cuts do mess up the system.
§ The
healthcare industry is badly disrupted by power outages. Lifesaving equipment
cannot run without power and major operations stand cancelled. In such cases,
DG sets are life saviors.
§ Data
centers and IT industry processes come to a halt.
§ The
lives of hundreds of workers in the mining industry is jeopardized.
§ Not
to mention, everyday lifestyle of India’s population which is ever increasing
is adversely affected in terms of computer shutdown, electrical equipment such
as heaters and induction cookers fail to work and thus, productivity slows
down.
How do power outages affect
businesses?
§ Due
to high frequency of power cuts, out of a total of 650 industries of various
sizes surveyed, 61% companies face more than 10% of loss in production.
§ Infrastructure
such as telecommunication networks, healthcare amenities, financial services,
water supplies, transportation industry and mining companies get badly hit. The
infrastructure constraints brought in by power outages in India increases the
relative cost of carrying out businesses which in turn gives birth to supply
side bottlenecks.
§ Frequent
power outages gone unattended limit the private sector’s global
competitiveness. As a result of this, fiscal conditions decelerate substantially.
§ The
manufacturing industry chiefly depends upon electricity for production. Due to
power cuts, machines and other multiple operations come to a standstill. This
stops production from individual scale to batch scale altogether. The
manufacturing sector is the backbone of India’s commercial success, and this
disadvantage keeps India from making it to the top League of Nations.
We
at Mahindra Powerol offer solutions to combat these issues of Power outages.