The prospects for the power sector in India are promising
There is hope that with a stable government there would be greater thrust on policy and execution. While coal will continue as the mainstay of power generation, the challenge will be to remove obstacles, integrate with other non-conventional sources, and
integration of the southern grid with the other four regional grids (already operating in a synchronous mode) is completed. Further, 25 per cent of the total targeted 10000ckt km of transmission line projects (in 12th Five-Year Plan) have already been completed as of December 2013. Renewed interest by foreign investors in power sector as reflected by picking up of equity stakes by them in Indian power companies. Further, there has been progress on policies to strengthen the PPP model for encouraging private participation. Approval of a debt restructuring plan to improve financial health of discoms. Work on multiple dedicated freight corridors to ensure rail connectivity with ports and enhance capacity for fuel transportation. Enhancement of production plans of CIL and its subsidiaries through technology enhancement, privatisation and consistent environmental policies, favourable import policy, and pricing strategy to balance the cost of imported and domestic coal.
The government has attempted to improve the efficiency of old coal-based plants through renovation, modernisation and life extension (R&M & LE) programmes. Rationalisation to synchronise tariffs for generation and distribution companies. Implementation of a uniform and transparent land acquisition and R&R framework. There is hope that with a stable government at the Centre, there would be greater thrust on policy enhancement and execution. Coal will continue to be the mainstay of power generation in India. The challenge will be to remove the obstacles, integrate with other sources including non-conventional ones and ensure sustainable growth of the sector through policy and practice enhancement.