Massive power failures have hit India, leaving an estimated 670 million people without energy and disrupting the country and its economy. The power failures are a setback for India’s reputation as a hi-tech developing economy and its efforts to improve the living standards of its people. They underline just how fragile India’s social and economic progress will remain until it is able to undertake large-scale reform of its economic and legislative infrastructure.
India’s aging power grids collapsed after its farming states drew additional energy to pump water because of dry conditions. But, the country has long been warned that unless it opens key economic sectors to foreign investment — to secure funds and technology — its ambitions to be a global power would collapse because of its weak infrastructure. Instead the government has dragged its feet on fighting corruption, reducing bureaucracy and overcoming vested interests to open the economy.
The power shortages are in part a result of these problems and popular frustration will tell against the government unless it is seen to move effectively to improve the national infrastructure.
Ironically, the former power minister Sushil Kumar Shinde, has been moved to become home minister, an effective promotion. While the timing may be unfortunate, the latest power outage will reflect badly on his record and does not bode well for his new ministry. This lack of accountability for the crisis will result in the perception that he is being reward, despite the power failure.
More worrying, the Indian Corporate Affairs Minister, Veerappa Moily, has been given additional charge of the power ministry. Given the scale of the problem and the importance of fixing the country’s power infrastructure, responsibility for it should have been passed onto a full minister who could give it their full attention and the priority is deserves.
By simply making power an addition to the portfolio of the Corporate Affairs minister, the impression is given that there is no programme to tackle the problem, only stop-gap measures. This is sure to be deterrent to investors and a worry to residents who have to continue living with consequences of an erratic power supply.
