ET AWARD GOVT

Re-energising  the Power Sector   ...and the award goes to BUSINESS REFORMER PIYUSH GOYAL Minister of State (independent charge), Power & Coal When Piyush Goyal took charge of power, coal and renewable energy in the Narendra Modi government, the youthful and energetic minister of state was handling a very complex, reform-resistant and scandalprone domain  that was divided between three cabinet ministers in the past. An alleged  `1.8 lakh crore coal scam, stranded thermal power plants, acute coal scarcity and mounting losses of state utilities were some of the problems he inherited. Three ministries with piles of problems could have been a deterrent, but, for some, it meant opportunities. As Seth Godin said, “If it scares you, it might be a good thing to try.“ Goyal saw opportunity in mass cancellation of coal mining licences to introduce a transparent auction process and followed it up with path-breaking reforms that were pending for a decade. He broke the 40-year-old state monopoly to allow private firms commercial mining of coal. He deftly negotiated with Coal India's unions, assuring them that the state-run miner would only get stronger. A union leader recalled: All we could say was: `You sound convincing, but we don't feel comfortable about liberalisation'.“ A rare combination of a chartered accountant, lawyer and an investment  banker, Goyal quickly swung into action. He rebooted the coal sector with an ordinance to clear the mess within a month after the Supreme Court's verdict that termed most coal blocks' allocation arbitrary . The auctions won accolades, and garnered `3.35 lakh crore of potential  revenues for coal-bearing states. Handling three ministries was a blessing.“It was very humbling. Our visionary prime minister could see that these ministries were so intertwined and interlinked that one cannot work without the other,“ Goyal said. He recalls a meeting in the first hour in office.The power secretary proposed doubling of the coal cess, the coal secretary “who would normally resist“ agreed, the renewable energy secretary was thrilled, and the decision was taken. “Otherwise, for the same decision,  there would have been a proposal; the file would have moved; some ministry would have resisted; somebody would have raised  queries,“ he said. The results are visible: Stranded gas-based plants have started operating, coal-fired plants have enough fuel, coal output is at a conducting coal auctions. “For the first time in 20 years, there's no shortage of coal,“ said one juror. Another said Goyal was “close to solving the discoms problem“ and power availability was poised to improve sharply . The challenges are inefficiency of distribution companies; continuing the pace of coal auctions, achieving the ambitious target of 1,75,000 megawatts of renewable energy capacity and litigation following the auctions. Goyal is a tough taskmaster who sits with his team while they burn the  midnight oil. A bureaucrat recalled how they prepared the coal ordinance  in three sleepless nights. award went to Piyush Goyal. The jury noted how he inherited a complex and controversial domain and delivered effectively. ET19OCT15