Power demand is near record levels, and exchange prices are frequently hitting the price cap. How prepared is the power sector to meet the summer demand?

We are prepared. We carried out our exercises well in time, and we put systems well in advance. So, we are fully prepared. To ensure capacity, we issued orders under Section 11, saying that all imported coal-based plants have to be on par and offer power. Normally at any time of the year, 15,000-18,000MW is under planned maintenance. We have said that planned maintenance will not happen during this period when the demand is going to touch the peak. So, now, the planned maintenance has come down to 500-400MW. We have ensured that we have enough coal stocks to last. We have done that by taking steps in advance. We started blending from the beginning. Till now, our blending (of imported coal) would have amounted to about 33-34 million tonnes. The domestic coal stock (at power plants) yesterday was 31.71 million tonnes. The domestic coal stock yesterday was 31.71 million tonnes.

Coal India has increased its production. But our demand has increased much faster, which is a great thing. It is unprecedented for a country that power demand goes up by 10.5% in two years.

There was a move to bring electricity under GST and Deloitte had prepared a report. What has been the progress on that front?

Deloitte has carried out studies. The last time they presented it to us, it was clear that consumers would benefit because the prices would come down. Now, we also want it to be neutral for state revenues. There are two goals. One is that some states levy electricity duties on consumption. Suppose we put GST, that electricity duty will come to an end. So, that has to be neutral. Otherwise, the states will not accept it. The cost of electricity should also come down for the consumer. So, we have asked them to redo their maths according to this. Our objective is that for the states, it should be revenue-neutral. The consumers also must gain. It means that power costs must come down. So, these are the two main considerations, and once we have the configuration that has both these results, then we are there. Then we will send it to finance ministry which will send to the GST Council for its consideration. With these results, I don't see any problem with the states adopting it. It will be huge in the sense that even the cost of investment in power will come down tremendously.

Although the Centre has taken a strong stand against the creation of new regulatory assets, there are instances where regulatory commissions have been non-compliant. How do you plan to proceed in such cases?

Commission has been largely compliant now. We are in the process of prosecuting DERC. There is a provision for the removal of the chairman of electricity regulatory commissions. One of the grounds for removal is misconduct. Violation of the rule, law or order of the supreme court is misconduct. DERC has violated several orders of APTEL. Therefore, it is misconduct. The procedure is that the Centre or the state government moves to APTEL to carry out an enquiry into the charges. APTEL will carry out the enquiry and give its report to the appropriate government for removal. Now, the ministry of power has moved APTEL to conduct an enquiry.

I am very clear in my mind that there is not going to be any situation where any entity, whether it is a discom or a generator or whatever, no entity will be allowed to violate the law and go scot-free. If APTEL finds the charges we have brought are verified and correct, then they will send it to the Delhi government, the lieutenant governor in this case. The law is sacrosanct.

What are your expansion plans for hydropower in Arunachal as China is building major dams on its side?

Currently, 14,000MW is under construction in the country. Soon, our central PSUs will sign MoUs (memorandums of understanding) for starting further 12,000 MW in Arunachal. NHPC, SJVN, THDC, and NEEPCO would be among the PSUs which would sign the MoUs. We are aware of the fact that our neighbours to the north have been adding huge hydro capacities. To preserve our water security on our side of the border, we have to add capacity. The cost of 1MW would be ₹10 crore- ₹12 crore. Arunachal is going to become one of the states with the highest per capita income. The Dibang project with 2,800MW has also started. The 2,000MW Subansiri project is also underway. We will commission one unit in June.

In the past year, efforts have been increased to clear discom dues. By when would the dues be completely paid?

Discoms have become viable. The legacy dues are being wiped out. Nearly ₹50,000 crore worth of dues has been wiped out. We have put in place systems which are transparent and clear.

The system we have put in place is that if you consume electricity, you must pay for it. We don't mind if states don't want consumers to pay. But, states must pay for the subsidies announced.

If you don't pay your subsidy, then it will be a violation of the rule. Similarly, the subsidy has to be accounted for. The subsidy has to be announced on a per unit basis, and the bill has to be sent every quarter by the discom to the state government saying that "this is the per unit subsidy announced by the government for so and so category of consumers. These many units have been supplied to this category of consumers. Therefore the subsidy is this much, and you must pay. We are just making sure that the law is followed." Similarly, if you draw electricity from a generator and don't pay for that, electricity will get cut off automatically. That is why my discoms have become viable. We have changed the whole power system in every way.

The availability of power was 12 hours in 2015. Today, it is 22 hours in rural areas. In urban areas, it was 23 and a half hours. We have reduced the AT&C (aggregate technical and commercial) losses by 5% in one year (FY23). We have brought it down to 16.5% from 22%.