Electricity situation in Gujarat – How much of it is due to Modi?

Below is a repost of a comment  by a Gujarati, Mitesh, on the power situation in Gujarat and how much of the credit should go to Modi:

Electricity is a non issue in Gujarat only for one reason. Because, we want electricity, and will pay anything for it. In Ahmedabad, we pay around Rs. 8 per KWh above first 50 units (including the surcharge, we are paying for those who steal electricity). Now compare it with delhi, where they were given electricity at 4.80 Rs. for 400 units, and 6.40 for the rest (and still there is a problem and they had to revise it, the battle is not over). IF everybody in India is ready to pay what we pay for electricity in Gujarat, there will be 400 companies competing to install the power plants (in those 16 states as well) and there will be 100% electrification with 100% uptime. It’s people, who pay more for the electricity, and not because of Modi doing something to provide us electricity. This was my whole point. Take it or leave it.

Another comment by Mitesh in that same discussion thread (Edit 15-3-2014: Note that the comment below is from 2012, and yet the issues and prices mentioned are exactly same as what Kejriwal raised at his recent Gujarat visit):

Oh, but I am exactly getting your point. And I am endorsing it. Only thing I am telling you is that there is nothing Modi can get credit for. What I’m telling you is that there was no grievous power problem, even before Modi. GEB was functioning nicely before, except the efficiency issues, and the situation is same even now for GEB.

You are right that the power requirements of Gujarat has increased, but at the same time existing infrastructure and some new companies have contributed. No initiative from Govt. of Guj. New power companies are coming for profit (rates in Gujarat are higher than even delhi), and there is no way power companies would suffer profit. When population of a village is 100, there will be one shop. When it is 200, there will be another shop. Not rocket science, and certainly, no role of government certainly.

About the Adani power, there is a collusion with Government. I am aware that the solar power is the one purchased at Rs. 13 (and that’s for 10 years flat, not 1-2 years), but the problem is that Adani power is purchasing the power from Gujarat Govt. at subsidized rates of 2.5 Rupees in the same mundra port area, where Adani is producing power and not using it’s own. I am not aware about TATA power, so no comment on that. Government is not encouraging new power companies for people, but for the sake of collusion. One more example of Adani collusion is Adani PNG (gas through pipeline). In Ahmedabad, when we paid our first bill, the rate was Rs. 6, now 1 year later the rate is Rs. 18. But we (the people of Gujarat) don’t care about that either!

It would be an achievement for Modi, if the power would be provided at cheap rates, which is very much possible (even farmers are given the electricity at the same rate, but there are subsidies to be claimed, which nobody does), but we don’t care about the electricity prices in Gujarat. What’s more, in Gujarat, we pay electricity surcharge to the tune of 36%, which is impounded on us to balance the electricity theft. Finally, newspaper articles are not to be relied upon. The same times of india writes much more about Mr. Modi. Would you quote everything here?

[For allegations of collusion between Modi and Adani group, take one instance where Modi has conceded giving 14,305 acres at rates from Re.1 to Rs.32 per sq meter to Adani group, and refused to answer what the prevailing market rates were!]

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