TERM PAPER

OF

STRATEGIC MANAGEMENT

ON

Topic: POWER SECTOR

SUBMITTED TO: SUBMITTED BY:

Dr. Gopal Krishnan Rajesh Chilwal

RT1901-A18

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 ACKNOWLEDGEMENT

Accomplishment of any task, howsoever small it may be, is

Not possible without the blessings of the Almighty and without the active

Help of certain individuals.

My special thanks to Dr. Gopalkrishan Who motivated me to take up this Term paper. I’m
highly grateful to him for guiding me so affectionately.

And …… last, but not the least, I’m indebted to teachers

For their help, moral support. I hope and wish; I can repay their efforts half as much as they have
effort for me.

Rajesh chilwal

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 CONTENT

Executive summary
Introduction
Perspective plan
Growth of power sector
Fact and figure
Major player
Regulation
Investment opportunity
Review of literature
SWOT analysis
PESTLE analysis
TOWS matrix
IFE
EFE
Porters5 forces model
SPACE
Prediction and Recommendation
Conclusion
Bibioliography

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EXECUTIVE SUMMARY
 The electricity sector in India is predominantly controlled by Government of India's public
sector undertakings (PSUs) but the private sector is also catching up fast.

 India is world's 6th largest energy consumer, accounting for 3.4% of global energy
consumption. Due to India's economic rise, the demand for energy has grown at an average of
3.6% per annum over the past 30 years. In March 2009, the installed power generation capacity
of India stood at 147,000 MW while the per capita power consumption stood at 612 kWH. The
country's annual power production increased from about 190 billion kWH in 1986 to more than
680 billion kWH in 2006.

 India faces a serious shortfall in power generation. During the tenth plan, only 23,000
SAMW of capacity was added against the original target of 41,000 MW. During the 11th
plan, a target of 78,000 MW has been set.

 Anil Kakodkar, Chairman, Atomic Energy Commission, India had estimated that the per
capita electricity generation would reach about 5300 kWh per year in the year 2052 and total
about 8000 TWh.

 The Government of India has an ambitious mission of „POWER FOR ALL‟ BY 2012. This
mission would require that the installed generation capacity should be at least 200,000 MW by
2012 from the present level of 144,564.97 MW. Power requirement will double by 2020 to
400,000MW.

 The ratio of energy generation and GDP growth should be 1:1. The growth in electricity
consumption over the past decade has been slower than the GDP‟s growth. This could be due to
high growth of the services sector or it could reflect improving efficiency of electricity use.
Moreover, captive generation has also increased. However, as growth in the manufacturing
sector picks up, the demand for power is also expected to increase at a faster rate.

 A new era of power on power competition will emerge by 2014 that will bring in at least 80-
85 GW of new capacity - 80- 90% of them thermal units targeting high PLF of 80-95% -
reducing the base load deficit to a low of 1-2%. Accordingly, we expect pricing pressures in the
generation space and a 40-50% decline in average short term/merchant prices by 2014-15.

 Renewable sources of energy and nuclear energy which are clean sources of energy usage is
on the upswing and would contribute heavily in the times to come.

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INDIAN POWER SECTOR

Power is one of the prime movers of economic development. The level of availability and
accessibility of affordable and quality power is also one of the main determinants of the quality
of life. In India the process of electrification commenced almost with the developed world, in the
1880, with the establishment of a small hydroelectric power station in Darjeeling. However,
commercial production and distribution started in 1889, in Kolkata. In the year 1947, the country
had a power generating capacity of 1,362 MW. Generation and distribution of electrical power
was carried out primarily by private utility companies such as Calcutta Electric. Power was
available only in a few urban centers; rural areas and villages did not have electricity. After
1947, all new power generation, transmission and distribution in the rural sector and the urban
centers came under the purview of State and Central government agencies. State Electricity
Boards (SEBs) were formed in all the states. Legal provisions to support and regulate the sector
were put in place through the Indian Electricity Act, 1910. Shortly after independence, a second
Act - The Electricity (Supply) Act, 1948 was formulated, paving the way for establishing
Electricity Boards in the states of the Union. In 1960s and 70s, enormous impetus was given for
the expansion of distribution of electricity in rural areas. Since then, almost all new investment
in power generation, transmission and distribution has been made in the public sector. Most of
the private players were bought out by state electricity boards. The power Sector has been
receiving adequate priority ever since the process of planned development began in 1950. The
Power Sector has been getting 18-20% of the total Public Sector outlay in initial plan periods.
Remarkable growth and progress have led to extensive use of electricity in all the sectors of
economy in the successive five years plans. Over the years the installed capacity of Power Plants
has increased to 100,000 MW on March, 2000 from meagre 1362mw in 1947. Similarly, the
electricity generation increased from about 5.1 billion units to 420 Billion units. The per capita
consumption of electricity in the country also increased from 15 kWh in 1950 to about 338 kWh
in 1997-98, which is about 23 times. In the field of Rural Electrification country has made a
tremendous progress. About 85% of the villages have been electrified except far-flung areas in
North Eastern states, where it is difficult to extend the grid supply. And now India has become
sixth largest producer and consumer of electricity in the world equaling the capacities of UK and
France combined. The number of consumers connected to the Indian power grid exceeds is 75
million. However, the achievements of India's power sector growth looks phony on the face of
huge gaps in supply and demand on one side and antediluvian generation and distribution system
on the verge of collapse having plagued by inefficiencies, mismanagement, political interference
and corruption for decades, on the other. Indian power sector is at the cross road today. A
paradigm shift is in escapable- for better or may be for worse.

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PERSPECTIVE PLAN

VISION FOR POWER DEVELOPMENT IN THE COUNTRY FUTURE POWER

SCENARIO

The National Electricity Policy of the Government stipulates that “reliable and quality power at
affordable price is to be made available to all by the year 2012, i.e. by the end of 11th Plan. In
this regard, the projection of the demand of electricity is made by 16th Electricity Power Survey
Committee. As per the forecast made by 16th Electric Power Survey, energy requirement at the
end of 10th Plan, i.e. March'07 is 720 million units (MU), which is likely to increase to 975 MU.
Accordingly, a target of addition of 41,110 MW of generating capacity, comprising of 14,373
MW hydro, 25,417 MW thermal and 1300 of nuclear has been planned for the 10th Plan period
(2002-07). However, based on the latest status of monitoring, it is expected that about 40,000
MW (comprising of 12,000 MW hydro, 25,500 MW thermal and 2500 MW nuclear) is likely to
be added during the 10th Plan period.

In order to meet the target of making quality power available to all by the year 2012 (end of 11th
Plan), a capacity addition of 67,439 MW comprising of 23,359 MW hydro,
38,165 MW thermal and 5915 MW nuclear has been planned for 11th Plan. However, the latest
indications suggest that an addition of 61,000 MW comprising of 21,000 MW hydro,
35,000 MW thermal and 5000 MW nuclear could be feasible during 11th Plan period. Even with
this level of capacity addition, the country could face a peaking shortage of about
12.7% and energy shortage of 5.6% by the end of 11th Plan.
It may be seen that with the capacity addition of over 1,00,000 MW during 10th and 11th Plan,
only the mission of providing power for all by 2012 is expected to be a reality.
The strong power sector infrastructure thus will pave the way for overall economic growth and
social development of the country.
6
Transmission Development during Tenth Plan
(2002-07)
Keeping with the pace of growth during previous plans, an ambitious plan has been developed
for the Tenth Plan (2002-07) also. Accordingly, it is envisaged that a total 14968 ckm of 220kV
line, 34189 ckm of 400kV lines and 2559ckm of 800kV lines would be constructed during this
period. Similarly, 13785 MVA transformation capacities would be added at 220kV level and
32595 MVA at 400Kv level. Also, 2500 Ckm of HVDC lines alongwith 5000 MW of station
capacity is also programmed for tenth plan.

Development of National Power Grid

A National Power Grid for India is also being visualized at this stage and is expected to
materialize by 2007. This all India power grid is envisaged to be developed in a phased manner
first by integrating a cluster of Regions and subsequently, progressive integration of all the
Regions fully by the year 2012. The total inter-regional transmission capacity for exchange of
power among various regions, expected to go up to 34,500 MW from the existing capacity of
8,400 MW.

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Growth of Indian power sector
Power development is the key to the economic development. The power Sector has been
receiving adequate priority ever since the process of planned development began in 1950. The
Power Sector has been getting 18-20% of the total Public Sector outlay in initial plan periods.
Remarkable growth and progress have led to extensive use of electricity in all the sectors of
economy in the successive five years plans. Over the years (since 1950) the installed capacity of
Power Plants (Utilities) has increased to 89090 MW (31.3.98) from meagre 1713 MW in 1950,
registering a 52d fold increase in 48 years. Similarly, the electricity generation increased from
about 5.1 billion units to 420 Billion units – 82 fold increase. The per capita consumption of
electricity in the country also increased from 15 kWh in 1950 to about 338 kWh in 1997-98,
which is about 23 times. In the field of Rural Electrification and pump set energisation, country
has made a tremendous progress. About 85% of the villages have been electrified except far-
flung areas in North Eastern states, where it is difficult to extend the grid supply.

Structure of power supply industry

In December 1950 about 63% of the installed capacity in the Utilities was in the private sector
and about 37% was in the public sector. The Industrial Policy Resolution of 1956 envisaged the
generation, transmission and distribution of power almost exclusively in the public sector. As a
result of 5 this Resolution and facilitated by the Electricity (Supply) Act, 1948, the electricity
industry developed rapidly in the State Sector. In the Constitution of India "Electricity" is a
subject that falls within the concurrent jurisdiction of the Centre and the States. The Electricity
(Supply) Act, 1948, provides an elaborate institutional frame work and financing norms of the
performance of the electricity industry in the country. The Act envisaged creation of State
Electricity Boards (SEBs) for planning and implementing the power development programmes
in their respective States. The Act also provided for creation of central generation companies for
setting up and operating generating facilities in the Central Sector. The Central
Electricity Authority constituted under the Act is responsible for power planning at the national
level. In addition the Electricity (Supply) Act also allowed from the beginning the private
licensees to distribute and/or generate electricity in the specified areas designated by the
concerned State Government/SEB. During the post independence period, the various States
played a predominant role in the power development. Most of the States have established State
Electricity Boards. In some of these States separate corporations have also been established to
install and operate generation facilities. In the rest of the smaller States and UTs the power
systems are managed and operated by the respective electricity departments. In a few States
private licencees are also operating in certain urban areas.
From, the Fifth Plan onwards i.e. 1974-79, the Government of India got itself involved in a big
way in the generation and bulk transmission of power to supplement the efforts at the State level
and took upon itself the responsibility of setting up large power projects to develop the coal and
hydroelectric resources in the country as a supplementary effort in meeting the country’s power
requirements. The National thermal Power Corporation (NTPC) and National Hydro-electric
Power Corporation (NHPC) were set up for these purposes in 1975. North-Eastern Electric
Power Corporation
(NEEPCO) was set up in 1976 to implement the regional power projects in the North-East.
Subsequently two more power generation corporations were set up in 1988 viz. Tehri Hydro

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Development Corporation (THDC) andNathpa Jhakri Power Corporation (NJPC). To construct,
operate and maintain the inter-State and interregional transmission systems the National Power
Transmission Corporation (NPTC) was set up in 1989. The corporation was renamed as POWER
GRID in 1992.
The policy of liberalisation the Government of India announced in 1991 and consequent
amendments in Electricity (Supply) Act have opened new vistas to involve private efforts and
investments in electricity industry. Considerable emphasis has been placed on attracting private
investment and the major policy changes have been announced by the Government in this regard
which are enumerated below:
The Electricity (Supply) Act, 1948 was amended in 1991 to generating companies for setting up
power generating facilities and selling the power in bulk to the grid or other persons. Financial
Environment for private sector units modified to allow liberal capital structuring and attractive
return on investment. Up to permitted for projects set up by foreign private investors in the
Indian Electricity Sector. Administrative & Legal environment modified to simplify the
projects. Policy guidelines for private sector participation in the plants issued in 1995.
In 1995, the policy for Mega power projects to more than one state introduced. The Mega
projects to be set up in the regions having coal and hydel potential or in the coastal regions based
on imported fuel. The Mega policy has since been refined and Power Trading Corporation (PTC)
Projects. PTC would purchase power from the Mega Private Projects and sell it to the identified
SEBs.
In 1995 GOI came out with the quick capacity addition so as to avert a severe power crisis.
Liquid fuel linkages (Naphtha) were approved for about 12000 MW Power plant capacity. The
non orimulsion have also been permitted for power generation.
GOI has promulgated Electricity Regulatory Commission Act, 1998
Regulatory bodies both at the Central level and at the State level viz. The Commission (CERC)
and the State Electricity Regulatory Commission levels respectively. The main function of the
CERC are to regulate the tariff of generating companies owned or controlled by the Central
Government, to regulate the tariff of generating companies, other than those owned or controlled
by the Central Government, if such generating companies enter into or otherwise have a
composite scheme for generation and sale of electricity in more than one State to regulate the
inter-state transmission of energy including tariff of the inter-state bulk sale of power and to aid
& advise the Central Government in formulation of tariff policy provide for creation of hundred
percent (100%) foreign equity participation can be procedures for clearances of the renovation &
modernization of capacity 1000 MW or more and supplying power incorporated recently to
promote and monitor the Mega Power liquid fuel policy permitting liquid fuel based power
plants to achieve a non-traditional fuels like condensate and for setting up of Independent
Central Electricity Regulatory (SERCs) at the Central and the State transmission utilities, to
regulate 6 private an of power

The CERC has been constituted on 24.7.1998.

The main functions of the SERC would be to determine the tariff for grid or retail, to determine
the tariff payable for use by the transmission facilities to regulate power purchase and
procurement process of transmission utilities and distribution utilities, to promote competition,
efficiency and economy in the activities of the electricity industries etc. Subsequently, as and
when each State Government notifies, other regulatory functions would also be assigned to
SERCs.

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The Electricity Laws (Amendment) Act, 1998 separate activity for inviting greater participation
in investment from public and private sectors. The participation by private sector in the area of
transmission is proposed to be limited to construction and maintenance of transmission lines for
operation under the supervision and control of Central
Transmission Utility (CTU)/State Transmission Utility (STU). On selection of the private
company, the CTU/STU would recommend to the CERC/SERC for issue of transmission licence
to the private The Electricity Laws (Amendment) Act, 1998 provides for creation of Central and
State Transmission utilities. The function of the of energy through inter-state transmission
system a coordination relating to inter-state transmission system with State Transmission
Utilities, Central Government, State Governments, generating companies etc. Power Grid
Corporation of India Limited will be Central Transmission Utility.
The function of the State Transmission Utility through intra-state transmission system and
discharge all functions of planning and coordination relating to intra-state transmission system
generating companies etc.

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Facts and Figures: Size and Composition- In 2006/07, the country
experienced an overall energy shortage of 9.6% and peaking power shortage of 13.8%. In
2007/08, the percentage energy shortage further declined, though marginally, and was 9.9%.
However, the percentage peaking deficit dipped sharply in 2007/08 to 16.6%.

Thermal— 53% of the power is produced by thermal production using coal. 10% is power is
produced using gas and 1% power is produced using diesel.

Hydro-India was one of the pioneering states in establishing hydro-electric power plants; the
power plant at Darjeeling and Shimsa (Shivanasamudra) were established in 1898 and 1902
respectively and is one of the first in Asia. The installed capacity as of 2008 was approximately
367.76 MW. The public sector has a predominant share of 97% in this sector.

Nuclear- Nuclear power is the fourth-largest source of electricity in India after thermal, hydro
and renewable sources of electricity.[As of 2008, India has 17 nuclear power plants in operation
generating 4,120 MW while 6 other are under construction and are expected to generate an
additional 3,160 MW. India has recently made a 123- Nuke deal with USA where Indian atomic
sector is divided into two sectors; military atomic sector and civilised atomic sector. Under this
deal, Indian civilised atomic sector has come under the governance of IAEA (International
Atomic Energy Agency). India can receive the required fuel to generate the power from nuclear
power plant as well as nuclear reactors also from various countries.

Renewable- Renewable energy includes power from small hydro, wind, biomass, and urban and
industrial waste, solar energy, wind energy, tidal energy etc. Current installed base of Renewable
energy is 13,242.41 MW which is 7.7% of total installed base with the southern state of Tamil
Nadu contributing nearly a third of it (4379.64 MW) largely through wind power.

The following table shows the actual amount of the units of MW generated through various
sectors.

SECTOR MW

State 76036

Central 48471

Private 22246

Total 146753

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Cumulative growth in transmission sector-

Transmission lines At the end of 10th plan i.e. At the end of 11th plan i.e.
March 2007 March 2012

765 kV 1704 7132

HVDC +/- 500kV 58728 11078
HVDC 200kV monopole 162 162
400 kV 75772 125000
230 kV/220 kV 114629 150000
Total transmission lines 198089 293372
Unit is ckm- circuit km

Substation capacity where the power is converted from high voltage to low voltage or vis-à-vis is
shown below:

Substations Unit Plan 10 Plan 11

HVDC BTB MW 3000 3000

HVDC Bipole- MW 5200 11200

monopole
Total HVDC MW 8200 14200
terminal capacity
765 kV MVA 2000 53000

400 kV MVA 92942 145000

230 kV/220 kV MVA 156497 230000

Total AC substation MVA 251439 428000

capacity
MW- Mega Watt, MVA-Mega Volt Ampere

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 Source: Fig based on 17th Electric Power Survey (EPS) Renewable energy(Wind
Energy):Source- Powerline Magazine Sept 2009

Country Total installed New capacity-Top

capacity-Top 10 10 countries
countries
India 8.0 6.70
Italy 3.1 3.70
France 2.8 3.5
UK 2.7 3.1
Denmark 2.6
Portugal 2.4 2.6
Rest of the World 13.8 12.2
China 10.1 23.3
Spain 13.9 5.9
Germany 19.8 6.2
US 20.8 30.9
Canada 1.9
Total 120798 MW 27051 MW

Coal Lignite Nuclear Hydro

Sector Total
Central 16470 2500 3400 7034 29404
State 14057 5539 19596
Private 81873 7761 89634
Total 124400 2500 3400 20334 138634

Room for productivity improvement:

The plant load factor of thermal plants has risen from 72% in 2003 to over 77% in 2010
Plant load factor
Year All-India Central Sector State Sector Private Sector
2006-07 76.80 84.80 70.60 86.40
2007-08 78.61 86.74 71.89 90.77
2008-09 77.22 84.34 71.20 91.04

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Major Players
NTPC

NTPC, India's largest power company was set up in 1975 to accelerate power development in
India. It has emerged as an ‘Integrated Power Major’, with a significant presence in the entire
value chain of power generation business.
NTPC is ranked 317th in the ‘Forbes Global 2000’ ranking of the World’s biggest companies.
With a current generating capacity of 30,644 MW, NTPC has embarked on plans to become a
75,000 MW company by 2017.

NHPC

NHPC Limited (Formerly known as National Hydroelectric Power Corporation Ltd.), A Govt. of
India Enterprise, was incorporated in the year 1975 with an authorised capital of Rs. 2000
million and with an objective to plan, promote and organise an integrated and efficient
development of hydroelectric power in all aspects. Later on NHPC expanded its objects to
include development of power in all its aspects through conventional and non-conventional
sources in India and abroad.

At present, NHPC is a Mini Ratna Category-I Enterprise of the Govt. of India with an authorised
share capital of Rs. 1,50,000 Million . With an investment base of over Rs. 3, 17,000 Million
Approx., NHPC is among the TOP TEN companies in the country in terms of investment.

Initially, on incorporation, NHPC took over the execution of Salal Stage-I, Bairasiul and Loktak
Hydro-electric Projects from Central Hydroelectric Project Construction and Control Board.
Since then, it has executed 13 projects with an installed capacity of 5175 MW on ownership
basis including projects taken up in joint venture. NHPC has also executed 5 projects with an
installed capacity of 89.35 MW on turnkey basis. Two of these projects have been commissioned
in neighbouring countries i.e. Nepal and Bhutan.

NPCIL-Nuclear Power Corporation of India Limited is a Public Sector Enterprise under the
administrative control of the Department of Atomic Energy (DAE), Government of India. The
Company was registered as a Public Limited Company under the Companies Act, 1956 in
September 1987 with the objective of operating the atomic power stations and implementing the
atomic power projects for generation of electricity in pursuance of the schemes and programmes
of the Government of India under the Atomic Energy Act, 1962.

NPCIL is a MOU signing Company with DAE. Presently NPCIL is operating seventeen nuclear
power plants with total installed capacity of 4120 MW has five reactors under construction
totalling 2660 MW capacity. NPCIL has achieved more than 285 reactor years of safe nuclear

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power plant operating experience. NPCIL operates plants with motto ‘Safety first and production
Next’. NPCIL generated about 90 billion units of electricity in the X plan (2002-2007) exceeding
the set target by about 10%, and added 1180 MW capacity against the target of 1300 MW
capacity, thus realizing 91% of the target capacity addition.

POWERGRID

POWERGRID, a Navratna Public Sector Enterprise, is one of the largest transmission utilities in
the world. POWERGRID wheels about 45% of the total power generated in the country on its
transmission network. POWERGRID has a pan India presence with around 71,500 Circuit Km
of Transmission network and 120 nos. of EHVAC & HVDC sub-stations with a total
transformation capacity of 79,500 MVA.POWERGRID has also diversified into Telecom
business and established a telecom network of more than 20,000 Km across the country.
POWERGRID has consistently maintained the transmission system availability over 99% which
is at par with the International Utilities.

TATA power

India’s largest private sector power utility, Tata Power has an installed power generation
capacity of above 2785 Mega Watts, with the Mumbai power business, which has a unique mix
of Thermal and Hydro Power, generated at the Thermal Power Station, Trombay, and the Hydro
Electric Power Stations at Bhira, Bhivpuri and Khopoli, accounting for 1797 MW.

Reliance

Reliance Power Limited is part of the Reliance Anil Dhirubhai Ambani Group and is established
to develop, construct and operate power projects domestically and internationally. The Company
on its own and through subsidiaries is currently developing 16 large and medium sized power
projects with a combined planned installed capacity of 35,460 MW, one of the largest portfolios
of power generation assets under development in India.

Suzlon

Conceived in 1995 with just 20 people, Suzlon is now a leading wind power company with over
14,000 people in 21 countries with operations across the Americas, Asia, Australia and Europe.
It has got fully integrated supply chain with manufacturing facilities in three continents. It is rich
with sophisticated R&D capabilities in Denmark, Germany, India and The Netherlands. Market
leader in Asia and 3rd largest wind turbine manufacturer in the world, Suzlon Market Share rose
to 12.3% thereby making Suzlon 3rd largest wind turbine manufacturing company in the world

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Regulations and Policies
The regulation of Indian Electricity Industry commenced from Indian Electricity Act, 1910. It
was a comprehensive piece of legislation to “regulate the generation, supply and use of
electricity and dealt with licensing, regulation and safety”, giving considerable authority to the
provincial governments.
In 1948, the Electricity (Supply) Act, 1948 was passed “to facilitate the establishment of the
regional co-ordination in the development of electricity transcending the geographical limits of
the local bodies”.
Amendments in 1976 enabled generation companies to be set up by the central and state
governments resulting in the establishment of the NTPC, NHPC, NEEPCO, Mysore (now
Karnataka) Power Corporation and the consulting firms WAPCOS.
Ministry of Power (MOP) is the apex body governing the power industry in the country. The
Central Electricity Authority (the ‘CEA’), constituted under the Electricity (Supply) Act, 1948
(the “Supply Act”), is the technical wing of the MOP assisting on technical and economic
matters.

By amendment in 1991 generation was opened to private investment, including foreign

investment. Tariffs in cases of interregional movements and transmission charges were to be
determined by the central government on the advice of the CEA.
Further amendments in 1998 opened transmission to private investment subject to the approval
of the Central Transmission Utility (CTU) with a license to be issued by the CERC.
The Central Electricity Regulatory Commission (the “CERC”) is the regulatory body constituted
under The Electricity Regulatory Commission Act, 1998 (the “ERC ACT”) to bring into effect
rationalization of electricity tariff and transparent policies regarding subsidies for regulation of
interstate transmission of energy and promotion of efficiency and environmentally benign
policies. The ERC Act also provided for formation of State Electricity Regulatory Commission
(“SERC”) in the respective states for the rationalization of electricity tariff and formulation of
policy within each state.

The challenges and opportunities faced by Indian Power sector are:

• Low per-capita consumption of electricity
• Estimated demand growth of Power at 6-7%
• Estimated investment of Rs. 8,00,000 crores in power sector over next 10 years
• Privatization of SEBs
• Rationalization of the tariff structure
• Politically-sensitive issues such as subsidies
Indian Power Sector has some of the major strengths such as abundant coal reserves to support

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thermal power generation, huge potential for hydro-electricity generation and abundant
engineering skills to commission and run large-scale projects and a large consumer base.
But at the same time Indian Power Sector has number of weaknesses/problems such as,
• Inadequate power generation capacity
• SEBs’ weak financial health
• Lack of optimum utilization of existing generation capacity
• Inadequate inter regional transmission links
• Alarming level of Transmission and Distribution Losses
• Abysmally low level of collection efficiency
• Inadequate metering of consumers
• Large-scale theft
• Cross subsidization of Power and Skewed tariff structure
• Energy shortage of about 7.3% and peaking demand shortage of 12.5%
• Low PLF of Generating stations

The proposed reforms/restructuring is aimed at resolving these issues, which will improve sector
health. Power reforms are happening though the pace is slower than desired. The direct financial
implications of most of the changes are not yet visible but as states progress further on reforms,
the investment scenario would improve.
The reform strategy adopted by Ministry of Power comprises of Power Generation Strategy,
Power transmission Strategy, Distribution and supply Strategy, Regulation Strategy, Financing
Strategy, Conservation Strategy, Communication strategy, Legislative Initiatives.
The Chief Ministers met on 16th October and 3rd December, 1996 to discuss and deliberate
upon the issues pertaining to the power sector. A national consensus evolved for improving the
performance of the power sector in a time bound manner covering National Energy Policy,
Setting up of SERCs, CERCs, Rationalisation of Tariffs, and Distribution Privatization etc.

APDRP: Ministry of power launched accelerated power development and reforms program for
the period of 10 years from 2002-2012. The promotion and distribution of the power is done
through two types of support from government:

 Investment based- 25% of the project cost to general states and 90% project cost to
special states
 Incentive based- funds to the less loss making State electricity boards

As on 31 October 2007, a total of 571 projects have been implemented under the APDRP in
various states, with the total project cost estimated at Rs 170.34 billion. So far, a total amount of
Rs 71.24 billion has been released, and a counterpart fund of Rs 48.36 billion has been drawn
under the investment component. Nine states, that is, Andhra Pradesh, Gujarat, Haryana, Kerala,
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Madhya Pradesh, Maharashtra, Punjab, Rajasthan, and West Bengal, have shown reduction in
cash losses, amounting to Rs 57.53 billion, and have received benefits to the tune of Rs 28.76
billion under the incentive component from the Government of India (MoP 2008).

Rajiv Gandhi Vidyutikaran Yojana: The Government of India launched the RGGVY in April
2005, which aims at electrifying all unelectrified villages and providing access to electricity to
all rural households over a period of four years (MoP 2008).

FDI

The huge size of the market in the power sector in India and high returns on investment are
important factors in boosting FDI inflows to power. 100% FDI is permitted to this sector under
automatic route in almost all the power sectors in India except the Atomic energy. There are
huge opportunities of FDI in power sector in India. The power sector in India has grown
significantly and is an important part of infrastructure. Investment potential in power sector in
India is huge due to the market size and returns on investment capital. Past few years have
witnessed an outstanding growth in the power sector especially the sectors based on renewable
sources of energy. Opportunities of FDI in the Power Sector in India

India exist in - Opportunities of Foreign Direct Investment (FDI) in the Power

Sector in
• Hydro Projects

• Captive Power

• Ultra Mega Power Projects

• Nuclear Power

• National Grid Program

• Rural Electrification

• Trading

• Renewables

Important aspects of FDI in the power sector of India are -

• 100 percent Foreign Direct Investment is allowed under automatic route in almost
all the power sectors in India except the Atomic Energy

21 | P a g e
 • Power projects involving generation and distribution tasks are allowed in all types
and sizes

• As per the Electricity Act 2003, trading in power is activated. Power trading
inherently means a transaction where the price of power is negotiable and options
exist about whom to trade with and for what quantum. In India, power trading is in
an evolving stage and the volumes of exchange are not huge.

• A duration of 30 years will given as a renewable license period

• Thermal power plants will get a return of 16 percent on equity and will get 68.5
percent PLF

• The import of equipments will be entitled to 20 percent of import duty

• Power generating projects will have a five year tax holiday with five more years
which will have a deduction of 30 percent taxable profits.

Impact of Technology

The MoP is promoting the use of information and technology, through several applications and
e-governance initiatives, for achieving efficiency in transmission and distribution. The ministry
is also implementing several measures for implementing e-governance for bringing in
transparency and accountability in the functioning of the ministry.
 Hydropower net project It is a web-based application for monitoring of hydro
projects by the MoP and sharing of data by hydro utilities and the CEA. This system
has remote data updating facility and is presently being updated by hydro utilities
and the CEA.
 Public Grievances Redressal and Monitoring System, or PGRAMS, and
Centralized PGRAMS, or CPGRAMS: This is an online system for handling
public grievances. The centralized version was launched in 2007.
 MIS (Management Information System) on power sector scenario: It is a web-
enabled application, providing information on various activities undertaken by the
MoP.
 Use of clean coal technology: The Government of India is making concerted efforts
to reduce the rising levels of CO2 emissions, which are currently about 9% of the
global emissions. It has been promoting the use of clean coal technologies for
meeting future energy needs of the country.

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INVESTMENT OPPURTUNITIES
9

INVESTMENT OPPORTUNITIES IN THERMAL POWER

DEVELOPMENT
70% of the country's total installed capacity and more than 80% of the total electricity generation
is contributed by thermal power.

Coal continues to be the main source of for thermal generation.

The major thrust in thermal generation could be fructified through significant jump in unit size
and steam parameters resulting in higher efficiencies and better economics. The largest unit size
in the country at present is 500 MW and 600 MW super critical units are in the pipeline. The
projected future unit size is 800- 1000 MW with still higher super critical parameters which will
have low cost of generation, higher efficiency and are environment friendly.

With the identification of new gas sources and availability in international market, there is
renewed thrust in gas based combined cycle plants. Such CCGT plants are increasingly
becoming techno-economical viable with advancements in efficient gas turbine technologies and
their environmental benefits.

The post Electricity Act 2003 scenario provides for the opportunity for any generating company
to establish, operate and maintain a thermal generating station without the need of a license, thus
providing a free hand in setting up of a thermal generating plant.

Strong supportive factors conducive to investment opportunity such a vibrant strong and stable
economy, low cost indigenous fuel, availability of skilled manpower, indigenous power plant
manufacturing capability, presence of independent power producers and power sector reforms
initiatives as confidence building measures for prospective investors.

Thrust to R&M / life extension activities with large investment potential for improving the
performance of old thermal power stations. The 10th Plan (2002-07) is targeted towards 57 units
(14270 MW) for R&M works and 106 units (10413 MW) with anticipated total cost of more
than Rs.10000 crores.
The 10 Plan program envisages capacity addition of 14393 MW from hydel projects in the total
capacity addition of 41110.

23 | P a g e
INVESTMENT OPPORTUNITIES IN HYDRO POWER
DEVELOPMENT
Greater private investment through IPPs and joint ventures would be encouraged and conducive
atmosphere created for attracting private sector funds.

R&D in Power Sector

Government of India has set up a Standing Committee on Research in the Power Sector under
the Chairmanship of Chairman, CEA and DG, CPRI as the Member Secretary.
Members are drawn from various concerned organizations in the Power Sector, CSIR, CFRI,
TIFAC, NPC & other. The Committee has already identified the research projects to be taken up
on short, medium & long term basis. Action is being taken to initiate research in each of these
areas on prioritized basis.

Financial Requirements
The high capacity inter-regional transmission links, forming the back bone of the National
Power Grid would require an investment of the order of Rs. 40,000 crores of which about 50%
would be needed during the Tenth Plan period and the balance during the Eleventh Plan period.
Simultaneously, strengthening of the regional system for meeting the increased transmission
needs on account of increased inter-regional transactions as well as for evacuation, transmission
and dispersal of power from generation resources within the regions would have to be continued
and the transmission and distribution system in the State sector would also need to be
strengthened. The requirement of funds for transmission and distribution system in the country
corresponding to the programme of 1,00,000 MW of generation addition in the next ten years
has been estimated to be of the order of Rs.3,00,000 Crores as per the following break-up:

The Government made enabling provision for private sector participation in transmission sector
way back in 1998 by amending the then existing Electricity Act

INVESTMENT OPPORTUNITIES IN TRANSMISSION SCHEMES

Opportunities for Private Sector Participation in transmission X Plan XI Plan Total

National Grid System including Inter-regional and Regional 40,000 50,000 90,000
Transmission System
State's Transmission System 20,000 20,000 40,000
Sub-transmission and Distribution System 80,000 90,000 1,70,000

Total 1,40,000 1,60,000 3,00,000

1948. Generation of electricity was opened for private sector in 1991.
q In the newly enacted Electricity Act 2003, any private player can seek license from the
Appropriate Commission to carry out business in transmission of electricity.

24 | P a g e
 Government of India envisages two routes for private sector participation in transmission
ventures. IPTC route - provides
100% fund mobilization by private entrepreneurs as

IndependentPrivate
Transmission Company. And
JVC route -provides formulation of a Joint Venture Company (JVC) with CTU/STU by
selecting a private investor as joint venture partner.

To start with, Central Electricity Regulatory Commission granted transmission license on 13-11-
2003 to M/s Powerlinks Transmission Limited, a joint venture company of the Power Grid
Corporation of India Limited and Tata Power. This Joint Venture (JV) project is first of its kind
in India and is being promoted by Government of India as a pilot project under its policy of
encouraging private sector participation in transmission of electricity.

As a first project to be undertaken under the IPTC route, the Government has already identified
the Bina- Nagda-Dehgam 400kV Double Circuit transmission line of about 700 KM route length
to be taken up for private sector participation.

Opportunity of massive investment in Transmission exists and it is envisaged that upto Rs.9,000
crores can be invested by the private sector by the end of Xth Five Year Plan.

INVESTMENT OPPORTUNITIES IN DISTRIBUTION SCHEMES

·
Six Level Intervention Strategy: In order to achieve commercial viability Ministry of Power
has formulated six level intervention strategy that encompasses initiatives at National level, State
level, SEB/Utility level, Distribution Circle level, Feeder level and the consumer level.

· Anti-Theft Measures:
Several States viz. Andhra Pradesh, Karnataka, Madhya Pradesh, Uttar Pradesh, West Bengal,
Maharashtra, Kerala and Gujarat have taken number of initiative to curb the theft of power
which have shown improvement in collection of revenue by the SEBs/Utilities. The Electricity
Act, 2003 provides a legal framework for making theft of electricity a cognizable offence. Under
Section 135 of the Electricity Act, 2003, whoever dishonestly taps lines or cables or service
wires, tampers, damages or destroys meters etc. shall be punishable with imprisonment for a
term which may extend to three years or with fine or with both.

· 100% Metering Programme:

A programme of 100% metering has been taken up by States subsequent to Power
Ministers/Chief Ministers conference held on 26.2.2000. As on 30th September, 2004,
95% and 87% metering have been achieved in respect of 11 kV feeders and consumer feeders
respectively.
·
Consumer Care Centre:
To address consumer grievances various States have taken initiatives by setting up consumer
care centres and these centers are effectively operating at Hyderabad,

25 | P a g e
Vadodara, Bangalore, Faridabad, Delhi and almost all States
An investment of Rs. 86357 crores was assessed by the Working Group on Power at the
beginning of the Tenth Plan.
However the same has gone to Rs. 1,00,000/- crore as on today for the entire 10th Plan period
(2002-07).

Research And Development (R&D) And New Technologies:

According to the National Perspective Plan on R&D in Indian Power Sector up to 2015,
distribution sector was identified as the key area for taking up the Research and Development
(R&D) in this sector. The identified areas are:
l High voltage distribution system (HVDS)
l Demand side management
l Custom power devices
l Compact transformation devices
l Distribution automation
l Metering

Quality of Power Supply and Customer

Satisfaction:
With the enactment of the Electricity Act, 2003 the emphasis has been given on providing
quality and interruption free supply to customers. Keeping this objective in view Central
Electricity Authority (CEA) has started monitoring of reliability index, average tripping per
month in respect of 11 kV feeders in respect of towns having population of more than 8 lakhs.
This will facilitate in bench marking various indices for the annual frequency and duration of
tripping. Various State Electricity Regulatory Commissions (SERCs) are also in the process of
making regulations for standard of performance in compliance to various provisions of the
Electricity Act, 2003.

Regulation on Installation and Operation of Meters:

In compliance to provision of Section 55 of the Electricity Act, 2003, CEA is making regulation
on installation and operation of meters. This will facilitate in uniformity of approach for location
of meters, selecting type of meters and their specification, new investment opportunities. are
taking steps for implementing the consumer care centres for large towns of the States
(i) Supervisory Control and Data Acquisition
(SCADA) System:
To improve reliability and quality of power
Supervisory Control and Data Acquisition (SCADA)
System has been introduced in Accelerated Power Development Reforms (APDRP) Schemes.
(ii) High Voltage Distribution System (HVDS):
HVDS has been introduced for arresting power pilferage and reduction of losses by Andhra
Pradesh, Delhi,
West Bengal, Noida Power Company Ltd. etc.
(iii) Electronic/Static Meters:
Almost all States are installing electronic / Static meters on feeders and at consumer premises to
introduce energy accounting and auditing. Andhra Pradesh, Uttar
Pradesh, Orissa have successfully introduced Meter reading

26 | P a g e
REVIEW OF LITERATURE
The Development of the Power Sector in India: Issues and Prospects
(ARI)

Rajeev Anantaram
Analysis: It is well accepted in Indian and international policy circles that bottlenecks in
infrastructure in most subsectors –electric power, roads, ports, airports and sanitation–, with the
possible exception of telecommunications, are acting as a serious impediment to rapid and
sustained economic growth in India. The World Bank and the Indian Planning Commission have
independently estimated that economic growth in India is on average between 1 and 3 percentage
points lower than what it could have been if infrastructure bottlenecks were not as severe as they
currently are Indeed, India seriously lags behind not just advanced OECD economies in
infrastructure development, but even other developing countries of comparable size such as
Brazil and China. The UPA government, currently in its second successive term, has prioritised
the development of infrastructure in an aggressively drawn out plan stretching over the remainder
of the Eleventh Five-Year Plan (2007-12) and the Twelfth Plan (2012-17). However, given the
sheer size and diversity of the country and the extent of the catch-up, sustained policy
commitment is required over the next two decades to bring India’s infrastructure up to world
class standards.

This paper focuses on the electric power sector in India, which is projected to grow rapidly over
the next two decades. In particular, it discusses policy developments in the sector, especially
since the passage of the landmark ‘new’ Electricity Act (2003), the sector-specific issues that still
remain unresolved, primarily due to a combination of a complex administrative structure and the
reluctance of the State Electricity Boards (SEB, hereafter) to accede to a new policy framework
that would dilute their unchallenged authority, and the contours of future development, especially
the opportunities for private-sector participation, both domestic and foreign, in the development
of the power sector in India.

Conclusion: Recent legislation in the form of the Electricity Acts and amendments such as
universalising open access have added a spirit of dynamism to the power sector in India. It is hard
to see this trend reversing. Indian private sector companies are also confident of competing with
foreign companies in all sectors and hence the possibility of a return to autarchy under pressure
from domestic lobbies is equally unlikely. The issues previously discussed can be daunting, but
the regulatory regime is evolving and is being amended to induce greater transparency and a level
playing field. Above all else, there is multiparty agreement on the need for urgent reforms, which
minimises the chances of political disruption. From a private investor’s standpoint, this augurs
remarkably well and players who are willing to cope with an evolving regulatory regime will reap
rich rewards in the near to medium future.

27 | P a g e
Analysis of Power Sector in India Project Report

Power is an essential requirement for all facets of our life and has been recognized as a basic
human need. It is the critical infrastructure on which the socio-economic development of the
country depends. The growth of the economy and its global competitiveness hinges on the
availability of reliable and quality power at competitive rates. The demand of power in India is
enormous and is growing steadily. The vast Indian power market, today offers one of the highest
growth opportunities for private developers.
India is endowed with a wealth of rich natural resources and sources of energy. Resources for
power generation are unevenly dispersed across the country. This can be appropriately and
optimally utilized to make available reliable supply of electricity to each and every household.
Electricity is considered key driver for targeted 8 to 10% economic growth of India. Electricity
supply at globally competitive rates would also make economic activity in the country
competitive in the globalized environment.

As per the Indian Constitution, the power sector is a concurrent subject and is the joint
responsibility of the State and Central Governments. The power sector in India is dominated by
the government. The State and Central Government sectors account for 58% and 32% of the
generation capacity respectively while the private sector accounts for about 10%. The bulk of the
transmission and distribution functions are with State utilities. The private sector has a small but
growing presence in distribution and is making an entry into transmission. Power Sector which
had been funded mainly through budgetary support and external borrowings was opened to
private sector in 1991.

28 | P a g e
Power Sector In India: An Analysis - Market Research Reports On
Aarkstore Enterprise
By: Aarkstore Enterprise

India has been one of the fastest growing economies in emerging markets. Indian economy has
posted more than 9% growth for three years consecutively and has seen a decade of more than
7% growth. One of the key factors behind any growing country is the energy requirement and
supply in that country. As energy plays a very important role in industrial production and
common mans life, it has become extremely important to boost the growth in energy segment for
the growth of the country.

With the growing demand in energy requirement, the annual per capita energy consumption has
grown significantly. To fulfill the energy demand, the government has worked out a plan for
generation capacity addition in the country. The report deals with the growth in the energy
generation in India along with the growth in the equipments being used in the power sector.

With every capacity addition plan, there is an increased requirement of power equipments. The
report analyzes the major challenges in front of the country related to the supply and requirement
of power equipments.

Inspite of government initiatives in increasing energy supply in the country, there are many
issues that are creating barriers in capacity addition plan. The report discusses such issues and
challenges which are major reasons for the energy deficiency in India. Inspite of significant
efforts, the government has not been able to meet energy requirement of the country leading to
many opportunities for private players to enter in the market.

The report highlights the opportunities present in Indian Power Sector for the global players as
this sector holds great potential in the coming years reflected by the growth in the Indian
economy.

By combining SPSS Inc.s data integration and analysis capabilities with our relevant findings,
we have predicted the future growth of the industry. We employed various significant variables
that have an impact on this industry and created regression models with SPSS Base to determine
the future direction of the industry. Before deploying the regression model, the relationship
between several independent or predictor variables and the dependent variable was analyzed
using standard SPSS output, including charts, tables and

29 | P a g e
SWOT ANALYSIS

The energy sector has witnessed mixed news during the current fiscal so far. While crude prices
firmed up in the global market, the government's freeze on prices of petro-products affected
margins of oil companies in 1QFY05.
However, the government took a series of steps starting mid-June including excise duty
reduction and price increases. This was followed by another series of duty cuts (this time excise
as well as custom duties).
Given this backdrop, we feel that there is a compelling reason for a SWOT analysis on the oil
sector at the current juncture.

Strengths

 Developing economy: Historically, demand for petroleum products has traced the
economic growth of the country. With GDP expected to grow at near 7% in the long-
term, the energy sector would benefit from the same, going forward. To put things in
perspective, diesel sales grew by nearly 12% (which constitutes 40% of the entire petro-
products basket), petrol sales by 9% and a double-digit growth in LPG (liquefied
petroleum gas) in 1QFY05. While this rate is not likely to sustain, we expect the industry
to witness a 4% growth in the entire product basket in FY05 and beyond.

 Government decisions: The recent price increases and also the decision to allow oil
companies to increase prices within a band of 10% augurs well for the industry.
This step is likely to reduce government interference and provide some autonomy to oil
companies when it comes to increasing petrol and diesel prices in order to protect margins.
Further, the duty cuts are also likely to result in reduced under-recoveries by way of subsidies on
LPG and kerosene.
 Well established and vast transmission and distribution network.
 Highly qualified engineering and technical personnel.

30 | P a g e
  Regulatory framework is further facilitated with enactment of Electricity Bill, 2003.
 The Electricity Bill, 2003 holds promises for the power sector and certainly for the
consumer by way of competition reliability and rationalized tariff structure.

Weakness

Crude prices

Nearly 70% of India's crude requirements are fulfilled by imports and this figure is likely to
increase going forward. Crude prices have breached the $45 barrier again and are likely to
remain at around $40 per barrel range.
As per IEA, India is one of the most inefficient countries among developing nations as far as
energy usage is concerned. Such high crude prices are likely to impact margins of oil marketing
companies.
Given the political implications, retail prices may continue to lag the rise in input cost.

Lack of freedom

Although the government has decided to provide autonomy to oil companies to increase petrol
and diesel prices within a 10% band, other products such as LPG and kerosene continue to
remain under the government controlled price mechanism.
As per the current estimates, the subsidies on LPG amount to Rs 90 per cylinder after factoring
in duty cuts and that on kerosene is over Rs 6 per litre.
While the government has managed to reduce its share in subsidies, select oil companies are
being forced to absorb the losses.

Poor Infrastructure

Poor infrastructure has led to heavy T&D losses. Old and poor transmission and distribution
network has led to frequent power outages and poor quality of power.

 Lack of proper metering and theft has led to large scale losses. Only 51% of the power
generated is billed and only 41% is realized.

31 | P a g e
  Poor return to utilities, which affect their profitability and capacity to make further
investments.
 Increasing gap between unit cost of supply & revenue, approximately Rs 1.10/ unit.
 Non-availability of quality coal may hamper thermal plants’ efficiency in power
generation.

Opportunities

Equity Oil
Major oil marketing companies are now venturing into upstream exploration and production
activities so as to secure crude supply.
To put things in perspective, IOC and OIL India are likely to jointly bid for oil fields aboard. At
the same time, ONGC's wholly owned subsidiary, ONGC Videsh (OVL) has acquired stakes in
over 9 countries in its quest to attain the 20 MMT (million metric tonnes) by 2020. This
backward integration is an opportunity for IOC to secure at least 25% of its crude oil
requirements for the refineries.

Natural Gas
Natural gas has the potential to be the fuel of the future with demand outpacing supply by more
than two times. Such high scarcity of natural gas provides a big opportunity for oil companies.
The below mentioned table indicates the allocation to the various core sectors and the shortage
faced by them, thereby giving an idea of the potential for growth.
Although Petronet LNG has now started importing natural gas, the future holds promise as
Reliance Industries' Krishna Godavari Basin goes into commercial production in FY06 and Shell
commences its terminal at Hazira. More exploration activities are in the pipeline and this could
reduce the country's dependence on crude in the long term.
 The Electricity Bill, 2003 holds promises for the power sector and certainly for the
consumer by way of competition reliability and rationalized tariff structure.
 Emergence of strong and globally comparable central utilities (NTPC, POWERGRID).
 India has substantial non-conventional energy resource base and technologies to meet
growing power requirements by tapping this energy.

32 | P a g e
Threats

Competition
Until FY04, oil-marketing companies had complete control over the downstream marketing
business while private sector players were restricted to only refining.
However, with entry of private players such as Reliance, Essar Oil and Shell (in the waiting), the
sector is likely to witness increased competition going forward. The oil PSUs had hitherto
developed a fortnightly pricing mechanism, which is likely to discontinue.
The price of petrol and diesel is artificially kept high so as to cross-subsidize LPG and kerosene.
Since private players will not be bound to provide for these subsidies, PSU marketing players are
likely to suffer from lower throughput per outlet.

Continuing government interference

During the first six months of the current fiscal year, the oil marketing companies were refrained
from increasing product prices due to political reasons.
This affected margins of downstream players. Going forward, if the government interference
continues, oil-marketing companies will be at a disadvantage.
Although we believe the industry is likely to witness increased competition, the initial retail rush
by private sector players has slowed down. PSU marketing companies have already stepped up
their expansion plans and to that extent, have created significant entry barriers for private
players.

Although throughput per outlet (sales per outlet) is likely to decline in the future, we believe that
any substantial entry of the private players would indirectly benefit the PSUs, as the
government's pricing policy will not hold much water and the market forces would determine
pricing.

Environmental impact of thermal power stations

Thermal Power Stations in India, where poor quality of coal is used, add to environmental
degradation problems through gaseous emissions, particulate matter, fly ash and bottom ash.
Growth of manufacturing industries, in public sector as well as in private sector has further

33 | P a g e
aggravated the situation by deteriorating the ambient air quality. As content being in abundance
in Indian coal, problem of fly ash and bottom ash disposal increase day by day. The fly ash
generated in thermal power station causes many hazardous diseases like Asthma, Tuberculosis
etc.

Air pollution
Initially, perceptions of objectionable effects of air pollutants were limited to those easily
detected like odour, soiling of surfaces and smoke stacks. Later, it was the concern over long
term/chronic effects that led to the identification of six criteria pollutants. These six criteria
pollutants are sulphur di-oxide (SO2), Carbon Mono-oxide (CO), Nitrogen oxide (NO2), Ozone
(O3), suspended particulates and non-methane hydrocarbons (NMHC) now referred to as
volatile organic compounds
(VOC). There is substantial evidence linking them to health effects at high concentrations. Three
of them namely O3, SO2 and NO2 are also known phytotoxicants (toxic to vegetation). In the
later part Lead (Pb) was added to that list.

Nitrogen Oxide (NOx)

Most of the NOx is emitted as NO which is oxidised to NO2 in the atmosphere. All combustion
processes are sources of NOx at the high temperature generated in the combustion process.
Formation of NOX may be due to thermal NOxwhich is the result of oxidation of nitrogen in the
air due to fuel NOx which is due to nitrogen present in the fuel. Some of NO2 will be converted
to NO3 in the presence of 02. In general, higher the combustion temperature the higher NOx is
produced. Some of NOx is oxidised to NO3, an essential ingredient of acid precipitation and fog.
In addition, NO2absorbs visible light and in high concentrations can contribute to a brownish
discoloration of the atmosphere.

Sulphur Oxide
The combustion of sulphur containing fossil fuels, especially coal is the primary source of SOx.
About 97 to 99% of SOxemitted from combustion sources is in the form of Sulphur Di-oxide

34 | P a g e
which is a criteria pollutant, the remainder is mostly SO3, which in the presence of atmospheric
water is transformed into Sulphuric Acid at higher concentrations, produce deleterious effects on
the respiratory system. In addition, SO2 is phytotoxicant.
 Poor infrastructure has led to heavy T&D losses. Old and poor transmission and
distribution network has led to frequent power outages and poor quality of power

 Moreover, Government provides power to agricultural sector at subsidized rates and also
free of cost in some states. All these factors have resulted in financial disorder of the
State Electricity Boards (SEBs).

 Restoration of SEBs financial health and improvement in their operating performance

continues to be a critical issue. The Government of India has signed a Memorandum of
Understanding (MOU) with various states reflecting the joint commitment of centre and
states to undertake reforms in a time bound manner

 Inability of SEBs to raise funds, as most of the SEBs is on the verge of bankruptcy due to
poor operational performance. Adding to the problems, SEBs need huge money to
measure up competition from efficient private players

 The major risk of privatizing a critical sector like power is the precedence of commercial
over public interest. Some of these interests that will take a back seat include
development of environment friendly generation and provision of electricity for rural
areas. The new Electricity Act does not provide any specific financial incentives for
private players to address public issues

 The SBEs which are right now holding 60% of total installed capacity, will be hit
adversely by some provisions of the new electricity act such as delicensing of generation
and open access for IPPs and CPPs, there by such units will take away the most lucrative

35 | P a g e
 customers (like industrial and commercial users) from the SEBs. This will not only affect
SEB’s but also the entire power sector for near term.
External factor Evaluation Matrix
Key External Factors Weights Rating Weighted score
Opportunities
Huge investments leading to greater 0.1 2 0.2
demand of goods and services.
Demand leading to industry operating 0.075 2 0.15
at full & over capacity.
Better price realizations. 0.025 3 .075
Early birds to learn faster and thus 0.1 2 0.2
achieve repeat orders.
Formation of business groups and tie 0.05 3 .015
for joint bidding.
Level playing field for private & 0.075 2 0.15
public sector companies.
Healthier working environment and 0.075 2 0.15
increased private sector participation
in operation of distribution circles
also.
Increased external commercial 0.025 2 0.05
borrowings or ACB/WB findings
leading to better payment options

Key External Factors Weights Rating Weighted score

Threats
Purchase preference may be extended 0.15 4 0.6
to distribution sector
Increased in no. of small contractors 0.075 3 0.225
leading to price war.
Emergence of new players in the 0.025 3 .075
market like Schneider etc.
Increased tumkey contracts may 0.025 2 0.5
effect business of loose sales and also
expose manufactures to greater risk as
EPC contractors.
Political pulls & pressures may 0.1 2 .02
jeopardize the whole process
alarming it to be privatization and as
anti people.
The overall process of liberalization 0.1 2 0.2
of power sector is moving at a much
faster pace than the other

36 | P a g e
contemporary countries. This pace
should not lead to a total breakage of
the system
Total 1 2.285

The ratings are as follows

1 the response is superior

2 the response is above average

3 the response is average

2 the response is poor.

Comments

The score of 2.285 indicate that the equipment manufacturers are just above average in their
efforts to pursue strategies that capitalize on external opportunities and avoid threats.

Internal factor Evaluation Matrix

Key internal Factors Weights Rating Weighted score
Strength
Good corporate image 0.05 3 0.15
Complete range of products for 0.25 4 1
transmission & distribution.
Establishment brand name 0.05 4 0.2
Considered to be having technology 0.2 3 0.6
& design ability.
Strong & wide networks of 0.025 4 0.01
manpower across India.
Weakness
The procurement process in the 0.1 1 0.1
companies is cumbersome and
subject to auditing.
Low exposure to the needs & 0.15 1 0.15
dynamics of distribution business.
Role clarity on the requirement of 0.15 2 0.25
being an equipment supplier or a
solution provider.
Acceptance of customer to execute 0.05 2 0.1
low value high volume jobs.

37 | P a g e
TOTAL 1 2.56

The ratings as follows

1 a major weakness

2 a minor weakness

3 a minor strength

4 a major strength

Comments

The score of 2.56 indicates that the equipment manufacturers are above average in their overall
internal strategic position. However the different companies need to do the IFE separately.

TOWS
SO strategy
 Increase market share aggressively.
 Present a better way of performing the job in true with the established brand name.
 To address the demand in all the parts of the nation to give wide spread experience and
exploit the opportunities.
 To offer design solution to the customer
 Invest money in the process to have financial advantage over small contractors.

WO strategy
 Improve procurement cycle and reduce the process difficulties.
 Execute pilot project to gain experience and minimize risks.
 To have a dual role or organization structure to address the turnkey as well as loose
equipment market.

ST strategy
 To increase lobbying with the government to prevent extension of purchase preference
and maintaining level playing field in the segment.

38 | P a g e
  To tie up with small contractors on business sharing arrangements to prevent price fall
due to intense competition.
 To check the emergence of new player and be well prepared to counter them.
 To be caution in the event of change in government and the process of reforms falling off
the track.

WT strategy
 Reduce cost to increase margins
 To train manpower to counter the threats of enhanced competition and to execute the jobs
efficiently.
 Increase the acceptability in small jobs despite the preference for small contractors and
PSUS.

PORTER’S FIVE FORCE MODEL

The model of pure competition implies that risk-adjusted rates of return should be constant
across firms and industries. However, numerous economic studies have
Affirmed that different industries can sustain different levels of profitability; part of this
difference is explained by industry structure.
Porter’s model is based on the insight that a corporate strategy should meet the opportunities and
threats in the organizations external environment. Especially, competitive strategy should base
on and understanding of industry structures and the way they change.

Supply

Many projects have been planned but due to slow regulatory environment, the
supply is far lesser than demand. Currently, India needs to double its generation.
Many projects have been planned but due to slow regulatory environment, the
supply is far lesser than demand. Currently, India needs to double its generation
capacity to meet the potential demand.

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Demand

The long-term average demand growth rate is 6%.

Barriers to Entry

Barriers to entry are high, as entering this business requires heavy investment initially. The other
barriers are fuel linkages, payment guarantees from State
Governments, Retail distribution licensed, etc.
Bargaining Power to Suppliers

Not very high as Government controls tariff structure. However, this may change the future.

Bargaining Power of Customers

Bargaining power of retail customers is low, as power is in short supply. However,

Government is a big buyer and payment by Government can be more erratic.

Competition

Not high currently. The Electricity Act, 2003 will encourage investments, thereby increasing
competition.

PESTEL ANALYSIS
Political Factors:

BHEL being a public sector undertaking is greatly influenced by the political forces. There is a
change in policies every time the government changes. The business decisions are steered to a
great extent based on the individual preferences of the new leadership. The company does big
business overseas and these projects are directly dependent on the incumbent ruler’s
international trade policies. BHEL has, over the years, established its references in more than 70
countries across the world, encompassing almost the entire range of BHEL products and
services, covering Thermal, Hydro and Gas-based turnkey power projects, Substation projects,
besides a wide variety of products like: Transformers, Compressors, and Heat Exchangers etc.

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The government policies and regulations relating the company’s client industries can largely
affect the future of its business with these customers. For example, power sector has seen a
massive growth in the last few years and has been at the top of the political agenda. Now power
companies are the major clients of BHEL. Promotion of the sector augers well for the
organization as it can crack heavy deals with these companies. Moreover, the power sector was
deregulated in 2003, which opened doors for the entry of private players in the market. Such
entrants can also be potential customers for the company.

Being a PSU, it is the preferred choice for the other state-run entities and also the defense
services. It developed the Automatic storage & retrieval system (ASRS) for storage and
inventory management system of the Indian Army. The Company has signed a MoU with
APGENCO for setting up a 125 MW IGCC (Integrated Gasification Combined Cycle)
technology plant at Vijayawada. This is an eco-friendly, clean coal technology.

Economic Factors:

The economic boom in India particularly in the last one decade has played a significant role in
charting the success of the company. Lot of Industrialization has been brought about, which has
always been a catalyst for BHEL’s sprinting growth. Businesses are dependent on each other for
their survival and help themselves flourish mutually. When the economy does well all businesses
ride up the rising wave.
Power Generation is one of the primary indices of a country’s economic development. As of
31.3.2008, BHEL- supplied sets accounted for nearly 64% of the total installed capacity in the
country, contributing 73% of the total power generated in the country.
BHEL manufactures and supplies major capital equipment and systems like captive power
plants, compressors, industrial boilers, gas turbines, pumps, heat exchangers, electrical machines
etc. to a number of industries like, metallurgical, mining, cement, paper, fertilizers, refineries &
petro-chemicals, etc., other than power utilities. The growth of these industries has multiplied the
turnover of the company leaps and bounds in the last few years.
Turn key projects are the need of the hour and BHEL has proven turnkey capabilities for
executing power projects from Concept-to Commissioning.
In the area of urban transportation, BHEL is geared up for turnkey execution of electric trolley
bus systems, light rail systems and metro systems. Mass transport systems are a must for a
growing economy.

Social Factors:

In India the whole country and its people are poised for a giant leap towards economic growth
and prosperity. People have realized how important it is for the economy to develop for their
own betterment. Levels of awareness have gone up drastically and people are much more open
to industrial growth. However, having said that BHEL should also ensure that the company’s

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actions do not come in the way of any of the stakeholders, its decisions are ethical and don’t
encroach upon the rights of the society. The company should not be negligent towards societal
interests and rights.
Companies are taking more interest in corporate social responsibility these days and steps have
been taken by BHEL too to further the same. Its contributions towards CSR till date include
adoption of villages, free medical camps/charitable dispensaries, schools for the underprivileged
and handicapped children, ban on child labor, disaster/natural calamity aid, Employment for
handicapped, Widow resettlement, Employment for Ex-serviceman, irrigation using treated
sewage, pollution checking camps, plantation of millions of trees, energy saving and
conservation of natural resources through environmental management. Companies that are
sensitive to the needs and development of the society normally draw people’s attention and
respect faster and can create a superior moral image in the minds of their partners and clients, the
same showing more interest in working with an ethical and socially conscious group.
BHEL has established the Human Resource Development Institute in Noida, which forms a
cornerstone of BHEL’s learning infrastructure. The centre through various HRD efforts ensures
that Human Capital - is “Always in a state of Readiness” to meet the dynamic challenges posed
by a fast changing environment. This not only helps in achieving the organizational goals, but it
also serves as a platform to train aspiring and competent youth of the nation.

Technological Factors:

BHEL being an engineering and manufacturing giant is to a great degree driven by technological
developments and innovations and has its earnest efforts directed towards improving its
technological prowess to meet the changing requirements of a growing economy. At the same
time the company has to keep pace with the developments happening in its business areas, else it
will be knocked out by the competitors. BHEL has been a leader always and the fact that India’s
first underground metro at Kolkata runs on drives and controls supplied by BHEL is a testimony
to this.
The government is setting up supercritical thermal power plants in the country, each generating
around 2500-4000 MW and has plans to come up with many more in the near future. BHEL has
developed the technology and capability to produce large capacity thermal sets with super
critical parameters to gear up for this requirement.
The Company has proven expertise in Plant Performance Improvement through renovation and
up-rating of a variety of power plant equipments to improve the performance of existing plants.
It has also emerged as a major supplier of controls and instrumentation systems for various
power plants and industries.

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For enhancing the power transfer capability and reducing transmission losses in 400 kV lines
BHEL has indigenously developed a state-of-the-art 400 kV Controlled Shunt Reactor for
reactive power management of long transmission lines.
R&D plays a big role in technological development and BHEL attaches a lot of importance to it
all the same. BHEL’s investment in R&D is among the highest in the corporate sector in India.
Products developed in-house during the last five years contributed 13.80% to the revenues in
2007-08.
Besides this, the company has developed many eco-friendly technologies to serve the
environment conscious.

Environmental Factors:

BHEL is an environment friendly company in all its activities, products and services besides
providing safe and healthy working environment to all its stakeholders. The depleting water and
energy resources are a cause of concern for all. BHEL has taken certain measures to conserve
these precious resources. It has set up rainwater Harvesting Plants and Energy Conservation
Projects utilizing efficient technologies.

Proper disposal of Chemical and other wastes is also a major concern for which the company has
put up Chemical storage and disposal plants. All these projects helped in creating pollution free
environment, conservation of precious resources like energy, water, fuel oil, coolant besides
installation of proper system for storage/handling of chemical waste.
The company has made the principles of the Global Compact program of the United Nations a
part of its strategy, culture and day-to-day operations. Global Compact is a partnership between
the United Nations, the business community, international labor and NGOs and has a set of core
values enshrined in its ten principles on human rights, labor standards, environment and
anticorruption.
BHEL has been manufacturing and supplying a range of Renewable Energy products and
systems. BHEL is actively associated with the development and adoption of Hydel, Wind Power
and Concentrated Solar Power (CSP) projects in India and abroad. It has developed a technology
for reduction of NOx gases from coal-based thermal power plant. The company is also taking
active interest in CDM (Clean Development Mechanism) Projects and activities.

Legal Factors:

BHEL has attained ISO - 9001 certification for quality management and all its manufacturing
units/divisions have been upgraded to the latest ISO-9001: 2000 version. All the major
units/divisions of BHEL have been awarded ISO -14001 certification for environmental

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management systems and OHSAS-18001 certification for occupational health and safety
management systems. The company has to adhere to the scores of legal rules and regulations, the
acts, particularly the Companies Act 1956, The Factories Act, the Environmental Protection Act,
Sale of Goods Act etc.
These days no company wants to be unethical in its activities and be on the wrong side of the
law books, as the media in India is very active and the smallest of irregularities noticed and
reported by them can ruin the image of the company hugely.

SPACE Matrix

Strategic Position & Action Evaluation (SPACE) Matrix is another management tool used to
help analyze a company. It can also used to determine what sort of strategy the company should
undertake. The SPACE Matrix is broken down into four quadrants as being aggressive,
conservative, defensive, and competitive. Additionally, the SPACE Matrix analysis functions
upon two internal strategic dimensions which are financial strength (FS) and competitive
advantage (CA). Besides, the SPACE Matrix methodology also studies two business’ external
strategic dimensions such as environmental stability (ES) and industry strength (IS). The CA
(values from -1 to -6) and IS (values from +1 to +6) are representing by the X-axis of the
Cartesian graph whereas the FS (values from +1 to +6) and ES (values from -1 to -6) are
representing by Y-axis. After drawing these SPACE matrix graph, the overall strategic
positioning of a company can be determined.

SPACE matrix for Power sector:

Internal strategic position External strategic position

Y-axis Financial Strength (FS) (score: Environmental Stability

+6 best, +1 worst)] (score: -1 best, -6 worst)

+6: Operative earnings per share -2: Price or interest range of

increased competing products

+4: Liquidity slightly decreased -1: Inflation rates

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Total y-axis +5: Revenues increased -2: Technology Changes
score:
+5: Return on Equity increased -3: Competitive Pressure
+5.00 -2.00 =
+3.00 +5: Efficiency ratio stable -2: Demand Variability

Average: +5.00 Average: -2.00

X-axis Competitive Advantage (CA) (score: Industry Strength (IS) (score:

-1 best, -6 worst) +6 best, +1 worst)
Total x-axis score
-1: Market share -2: +6: Growth Potential +5:
-1.25 + 4.80 = Service Quality -1: Profit Potential +5:
+3.55 Customer Loyalty & reputation -1: Financial Stability +4:
Management Experience Resource Utilization +4:
Technologies Know-how
Average:
-1.25 Average: +4.80

Power sector’s SPACE Matrix Graph

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 Conservativ Aggressive
e
+
6

+
4 (3.55,
3.00)
+
2

+ + + + + +
-6 -5 -4 -3 -2 -1
1 2 3 4 5 6
-2

-4

-6 Competitive
Defensive

According to the graph above, we noticed that Power sector’s falls into the aggressive quadrant
of the SPACE Matrix. It is located at the coordinates of 3.55 for x-component and a y –
component of 3.00. It shows that Power sector has a strong competitive position in the market
with rapid growth. It is also indicates that Power sector should adopt an aggressive strategy. It
needs to use its internal strengths to develop a market penetration and market development
strategy. Other possible strategies include product development, integration with other banks and
also concentric diversification.

Aggressive Position

There are numerous tactics fall into the aggressive strategy category. One of the strategies is
market development. As stated above, we can note that Power sector is biggest bank in Malaysia
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and has 361 local branches and 88 branches in overseas. However, Power sector is not located in
every area of Malaysia. Therefore, it should try to expand their branches into new geographical
areas or markets. Besides, Power sector should also aggressively find ways to grow its business
overseas such as Thailand, Pakistan and middle-east. This objective can be attained through
mergers and acquisitions (M&A). Besides, May bank should carry out the market penetration
strategy. The management of May bank can think out the best way to sustain and compete in
exist market as well as new market. This method would be hire high level employees from the
competitors strong in those areas.

Moreover, May bank should focus on doing more market research. Many clients are
attracted to the company who is doing strong research. Therefore, Power sector should do
research to investigate customers’ discontent. Then, the company can improve their service and
product quality through customers’ suggestion. In addition to that, market research can show the
demand in different areas. Thus, the company will be success in every area by determining the
demand boundaries. Other than that, Power sector need to implement a strategy on product
development. The management should aim on offering new services such as helping their
customers or corporations manage interest rate and currency risks. By doing this, the Power
sector can move forward to obtain bigger slice of investment banking.

SPACE Matrix Conclusions

• Power sector high reputation helps in attracting customers’ loyalty

• Compete in an unstable environment
• Power sector should develop new market to various area of Malaysia as well as overseas
• They should expand its services and products such as helping corporations manage
interest rate and currency risks
• Eliminate inefficiencies and improves services quality. It can be done by doing market
research to investigate unfavourable performance. Then, make full use of the resources to
improve it.
• Seek Integration Opportunities such as merger and acquiring other existing banks in
different areas
• Hire potential employee either from competitors or from other sources to get bigger
improvement
• Seek new and good management staffs to get a better company direction

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Predictions
India requires an additional 90,000 MW of generation capacity by 2012.
Opportunities in Transmission network ventures - additional 60,000 circuit km of Transmission
network expected by 2012. Total investment opportunity of about US$ 150 billion over a 5 year.
By end March 2008, India will achieve Commercial Operation Date (COD) on about 10,000
MW, marking the best first year in any Plan period.
As per recent budget, Govt to will provide Rs.800 Crore for the Power Development and
Reforms Project. Govt. propose to create a national fund for transmission and distribution
reform in order to improve the poor state of transmission and distribution (T&D) that has been a
drag on the sector.
The fourth Ultra Mega Power Project (UMPP) at Tilaiya to be awarded shortly.
Possibility of bring up five more UMPPs in Chhattisgarh, Karnataka, Maharashtra, Orissa and
Tamilnadu.
In Hydro projects, 77 schemes have been identified with a total of 33,000MW capacity
additions.

Recommendations
 More focus on CDM (Clean development Mechanism)

The power sector has a predominant share in the CO2 emissions from India and there are
significant opportunities to mitigate these emissions. The renovation and modernization of an old
thermal power plant will help not only to improve efficiency but also the plant load factor. It also
proffers a remedy in a power-starved situation, in a shorter time frame compared to Greenfield
projects. While R&M has been regarded as an important option by power planners, and
incentives have been given for such investments, the drive has not been particularly successful
due to a lack of capital and fiscal incentives. This situation could be altered by CDM revenues.
 Policy stability

Despite central as well as state governments providing various fiscal and other incentives for
private investment in the sector, the uncertainty associated with their scope and continuity fails
to enlist investors’ commitment for long-term projects.
 Promote more power exchange with neighboring countries
 Rural electrification
 Stringent penalties for power theft
 Research and Development
 Addressing climate change through initiatives in the power sectorCONCLUSION

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CONCLUSION

The power sector has registered significant progress since the process of planned development of
the economy began in 1950. Hydro -power and coal based thermal power have been the main
sources of generating electricity. Nuclear power development is at slower pace, which was
introduced, in late sixties. The concept of operating power systems on a regional basis crossing
the political boundaries of states was introduced in the early sixties. In spite of the overall
development that has taken place, the power supply industry has been under constant pressure to
bridge the gap between supply and demand. Power development is the key to the economic
development. The power Sector has been receiving adequate priority ever since the process of
planned development began in 1950. The Power Sector has been getting 18-20% of the total
Public Sector outlay in initial plan periods. Remarkable growth and progress have led to
extensive use of electricity in all the sectors of economy in the successive five years plans. Over
the years (since 1950) the installed capacity of Power Plants (Utilities) has increased to 89090
MW (31.3.98) from meager 1713 MW in 1950, registering a 52d fold increase in 48 years.
Similarly, the electricity generation increased from about 5.1 billion units to 420 Billion units –
82 fold increases. The per capita consumption of electricity in the country also increased from 15
kWh in 1950 to about 338 kWh in 1997-98, which is about 23 times. In the field of Rural
Electrification and pump set energization, country has made a tremendous progress. About 85%
of the villages have been electrified except far-flung areas in North Eastern states, where it is
difficult to extend the grid supply. The government of India has taken various steps to enable the
growth in capacity. The Planning Commission has set a target to add 78 GW of capacity in the
five year plan for 2007–2012. As of March 2009, 12,467 MW has already been commissioned.
This growth is also accompanied by a growth in transmission capacity, and the transmission
sector is witnessing increased private participation from both international and domestic
companies with orders for transmission network strengthening worth USD$3 billion being
placed on them in January to March 2009 alone. The implementation of the government
sponsored Restructured Accelerated Power Development and Reforms programmed (R-APDRP)
for a power distribution utility is also currently underway.

Power Sector
While every party is intensely involved in the power game, no one is paying as much attention to
the power sector as it deserves. Liberalisation of the economy by itself would not produce the
desired results in tandem with growing needs of the industrial and economic progress. The
Indian Merchants Chamber, which spearheaded the movement for economic emancipation of
masses as a part of India's struggle for independence, deserves to be congratulated on organising
a workshop on challenges and opportunities in the power sector in the post liberalisation period
as a part of their 87th Annual General Meeting.

Now, the Power & Energy Infrastructure sector in India is poised for a major take-off.
The APDRP (Accelerated Power Development & Reforms Programme 2002 - 2012) has seen an
addition of around 22,000 MW during last five years and during the next five years, a capacity

49 | P a g e
addition of over 78,000 MW has to be setup by 2012. (A commitment of 15,600 MW of capacity
additions per annum).

The Market Potential to sustain the GDP Growth rate of India @ 8% plus per annum needs the
power sector to grow at 1.8 - 2 times the GDP rate of growth as espoused by economists,
planners and industry experts. This would mean a YOY capacity addition of 18,000 - 20,000
MW to achieve this ambitious plan of moving India to a Developed Economy status, as an
Economic Global Powerhouse. The Target Mission: ‘POWER for all by 2012’ would mean
achieving the target of 1000 KH (Units) of per capita consumption of electricity by this period.

To achieve this goal, following milestones are critical: -

• Attract US $ 250 Billion Investment into the sector. (FDI & Domestic Investment Combined)
• Adequate Capacity Growth to Sustain GDP Growth at 8% plus.
• Reliable & Quality Power On 24 x 7 bases, at least in Urban & Industrialized areas.
• 100% Rural Electrification with Adequate & Qualitative Power for irrigation purpose.
• Increasing the Role of Hydel & Renewable Energy in the Energy Mix.
• Urgent need to develop the alternatives, both in the Fuel & Technology terms.
• Focus on implementation (Outcomes are more important than Outlays)

- As espoused by the Indian Prime Minister, Dr. Manmohan Singh

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Bibliography:

Powerline Magazine September 09

http://www.ignou.ac.in

http://www.econ.ucsb.edu

http://www.business-standard.com

Dominic Wilson and Roopa Purushothaman, “Dreaming with BRICs: the path to 2050” Global

Economics Paper No 99, Goldmann Sachs, 1st October 2003.

http://en.wikipedia.org

http://www.scribd.com

http://www.indiaenergyportal.org

www.cygnusindia.com

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