The power sector is rapidly going into a three-fold crisis – rising tariffs, lack of coal and a huge overhang of debt for the companies in the power sector. The chickens of the power sector reforms carried out in the last two decades, particularly through the 2003 Electricity Act is now coming home to roost.

Any time, an expensive power project agreement is pushed on to the country, the argument is put forward that as we are short of energy, we should welcome power from any source. This was what was done during ruinous Enron project and what is being pushed now for the Jaitapur project. The victim in both cases are the people of Maharashtra, who earlier paid for expensive power from Enron and who will have to pay again the very high cost power from the proposed Jaitapur plant.