In the last couple of weeks, a heated debate has been raging over the Sardar Sarovar Project. I always have taken the stand that to label this scheme as the ‘Lifeline of Gujarat' was a fundamental mistake. This, in fact is a national project for more than one reasons.

There is lit tle doubt Sardar Sarovar is important Gujarat for its food and economic curity. The issue has already been discussed in these columns. This time, I will focus on another equally important issue – energy security for sustainable economic growth.

Inextricably linked with water is the issue of energy. Being the 10th largest economy in the world, India requires to harness all its energy resources to keep up the growth momentum. Already a fast track economy, India is expected to become the third largest economy in the world by 2050, according to Goldman Sachs. This indicates that India would be on the fast growth curve over the next 30-50 years. Growth could be higher than 5 per cent over the next 30 years and close to 5 per cent by 2050 if development proceeds successfully. Overall growth for the BRICs (Brazil, Rus-, India and Chi- is likely to slow significantly over frame, but by 2050, according to the report, would be recording growth rates significantly above three per cent.

Achieving this growth rate would depend on the availability, cost and efficient use of energy. It is here that power shortage could hinder growth. The steps being taken by the Government of India to mitigate power shortage are in the right direction. However, as of now, we suffer from power shortage which is around 12 per cent during peak load and 8 per cent in average terms. This is equivalent to 50 billion units ie Rs 15,000 crores at the

rate of Rs 3 per unit of forgone generation to utilities.

Considering the average cost of electricity at 5 per cent of the cost of production per unit of GDP produced, this 50 billion unit shortage very conservatively valued at Rs 15,000 crore would mean a GDP loss of Rs 3,00,000 crore.

Sardar Sarovar, when completed, would produce 1,450 MW of hydel power. The best thing in hydel electricity is that, apart from being the cleanest and cheapest form of power, it is the best source for peak load management. The western grid, to which this power will be fed, will go to the states of Maharashtra, Goa, Madhya Pradesh and Gujarat. And when fully operational, Sardar

Sarovar will supply to this grid seven billion units of electricity on a yearly basis. This means roughly, it will meet with about 15 per cent of the current shortage.

In monetary terms, seven billion units would mean Rs 21 billion worth of electricity annually. Applying the same yardstick, availability of additional power would mean the additional GDP produced would be worth over Rs 400 billion. Would this not add to national prosperity? Would this not be an addition to the size of our economy? Considering that Madhya Pradesh's share out of this is 57 per cent, Maharashtra's 27 per cent and Gujarat's 16 per cent, does this not mean a benefit to these energy-starved western Indian states? Is there any logic in not accepting Sardar Sarovar as a national project? If I may quote the latest Economic Survey 2005-2006, placed before Parliament: “Government is encouraging the use of hydel and wind energy sources which do not rely on fossil fuels and avoid carbon emissions. India has an estimated unutilised hydro-power potential of more than 1,50,000 MW. A study by the Central Electricity Authority (CEA) has identified 399 potential hydel projects with an aggregate capacity of 1,07,000 MW.”

Here is a hydel project almost on the verge of completion with power generating machinery installed and operational. It is capable of delivering seven billion units, if the dam height is raised to store sufficient water. This is the cheapest and cleanest form of electricity which can on a conservative estimate help add Rs 50,000 crore worth GDP to the national economy. By these standards, would SSNL not qualify to be a national project? I leave the answer to you.

(The author is former state Narmada development minister)