" This blog is a integrated approach towards tracking the Indian power sector
which is evolving, having a great potential with prosperous future."

ALL INDIA INSTALLED CAPACITY

ALL INDIA INSTALLED CAPACITY

Friday, October 29, 2010

Has the Planning Commission become irrelevant to the power sector?

The planning commission increasingly appears to be nothing but a relic from the Soviet era, at least for the power sector. It has no real power (pun intended) to set targets for capacity addition, which is fast moving towards the domain of the private sector. Even the pseudo-targets communicated to the public, in consultation with the power ministry, are never met. It cannot send proposals directly to the Cabinet, neither does it have the right to inflict punitive damages, against under-performance, on any entity of the economy.

  • In such a rapidly-decentralizing economy, does it make sense to waste resources in keeping the bureaucrats of the apex planning body employed? Supporters argue that having a monitoring mechanism, under the government, in place for the macroeconomy is essential. Further, they say that the body has evolved into a policy formulator for the broad sectors of the economy. It also acts as a mediator and consultant for issues that involve both the state and central governments.
  • One can argue, however, that the monitoring duties can easily be performed by a data repository, such as the existing Ministry of Statistics and Programe Implementation. Further, if the Planning Commission is to do policy, what use are the myriad of ministries and departments set up by the increasingly large government? Does it not make sense to absorb the "experts" of the Planning Commission into the respective ministries?

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