I do not like writing on the politics but when it hampers the reform of the nation there are concerns should be raised !!

Wednesday India restored electricity to the states, inhabited by 680 million people, that lost power Tuesday. But it will take much longer to restore the nation’s reputation after a dismal few days when a train fire killed 32 in south India, industrial production showed its slowest growth in months, there were two consecutive days of massive blackouts, and the government was widely ridiculed for giving an effective promotion, despite the outages, to the power minister.

Even by the recent standards of India, which has seen its standing as an investor darling and aspiring superpower seriously questioned, it hasn’t been a good spell.

To give you a clue when the nation’s largest-circulation financial daily Economic Times made the headline “Superpower India, RIP,” screamed. What can you make out of it ?

Another paper went with “Powerless & Clueless,” a reference to the appointment of the power minister, Sushilkumar Shinde, to home minister, the top security post, on Tuesday, when half the nation was affected by a power outage.

Chidambaram gets Finance. Moily gets Power. Shinde gets Home. India gets screwed. That is on of the tweet that trended like anything.

Indian industry also heaped criticism on the government. “This situation is a grim reminder of the humongous task we have on our hands in improving the infrastructure facilities,” said R.V. Kanoria, president of the Federation of Indian Chambers of Commerce and Industry, a trade group.

Experts estimate that problems associated with India’s infrastructure—including roads, ports and airports—shave off about two percentage points from its gross domestic product growth annually, making a speedy overhaul of the power infrastructure crucial to boosting economic growth. Well all the above managed by the various ministries.

The new power minister, Veerappa Moily, told a news conference Wednesday that normal electricity supply had resumed in the northern, eastern and northeastern parts of India. “I can reassure the entire nation that what has happened in these two days will not recur,” .. Sorry to correct he could have been a better corporate affairs minister, caught in the wrong job.

The blackouts are a symptom of stalled reforms and underinvestment in all segments of the Indian power sector—generation, transmission and distribution

The government‘s ability to push through necessary reforms—from the power crisis to further opening industry to foreign investment—remains politically challenging despite the air of crisis.

 

Advertisements