SIZE OF INDIAN POWER SECTOR Total installed capacity 330,260 MW CONTRIBUTION TO GDP N.A. TOTAL JOBS N.A. CHALLENGES
Financial viability of state distribution companies which suffer large losses across the distribution system for technical and commercial reasons.
Fuel supply is another major concern. Power sector exposure is seen at Rs 2.3 lakh crore, or 35 per cent of banks’ stress level
Demand for power is estimated to remain tepid at for the next three years
Debt service obligation of power sector will suffer
WHAT NEEDS TO BE DONE
The government needs to work on revival of demand, relief to stressed assets and ensure that sanctity of contracts are honoured. This will result in increased demand for power , and ensure investments into the sector.
India requires over $1.5 trillion in investments in the next 10 years. If the country has to grow at 7 per cent per annum, the government needs to push policy measures for creating an enabling environment for increased capital flows and better the performance of the infrastructure sector. Innovative approaches to increase private funding, and government initiatives such as project-acceleration programmes will act as the necessary stimulus.
Better monitoring of the UDAY and the Village Electrification Schemes
Ratul Puri Chairman, Hindustan Powerprojects