Power Surplus India-Hopes Taking Shape
Posted : June 24, 2006 at 6:28 pm [IST]
Why are we sure that better days are knocking at the door? The government in chair can no more neglect power sector, neither India Inc can. Here some reasons to hope.
7 ultra mega power projects each with a minimum capacity of 4000 Mw and with provisions for further expansion are committed. 30 or more domestic and foreign companies including NTPC, Tata Power, Reliance Energy, GMR, L&T, AES, CLP (China Light and Power), Suez Energy, and Sumitomo are vying with each other to get the business. Some company-wise information is inspiring. These companies are seeing the potential to multiply its business by manifold faster than what they did earlier.
NTPC is raising its capacity to 40,000 Mw by 2012 and 66,000 Mw by 2017.
Tata Power announced to increase its generation capacity from the present 2,278 Mw to over 4,500 Mw at an investment of Rs 18,000 crore.
ADAG (Anil Dhirubhai Ambani Group) plans to ramp up its generation from the current level of 1,000 Mw to 15,000 Mw in five years, with 7,000 Mw gas-based, and 5,000 Mw coal-based, and the rest hydel projects.
L&T is also entering generation and developing two gas based power projects of 460Mw each. MGR is another serious player in South. Many others in different parts of India are endevouring in power sector.
News from the power equipment manufacturers is also encouraging. Today BHEL order book has bulged to Rs 37,000 crore.However, BHEL must try to become globally competitive on its own. Even transmission tower manufacturer KEC International is with orders of Rs 2,500 crore. And then the Electricity Act 2003 asks for global tenders for the equipment and project, though many are trying to put a roadblock.
Transmission contracts are going to private companies. PGCIL (Powergrid Corporation) is using Tata Power to build 1200 km transmission lines from Siliguri (WB) to Mandola (UP) from Tala Hydroelctric in Bhutan at a cost of Rs 1980 crore. PHCIL has signed another $ 167 million with Reliance Energy to transmit power from 800Mw Parvati Hydroelctric (Uttaranchal) and 800 Mw Koldam Hydroelectric Project (Himachal) to the northern states.
Cogeneration is another significant initiative. Captive plants will double its capacity from 500Mw last year to 1,300Mw this year, as reported by BHEL. Tata Power is setting up a 120Mw captive plant using waste gases in steel making process from Tata steel, Jamshedpur. Many sugar companies are exploring the opportunities in cogeneration. Zee Group is planning to set up a 1063 captive power plant in Haryana for Rs 3500 crore. All SEZs including one recently announced by Mukesh Ambani for NCR will have captive power plants. Why can’t many of the satellite towns with cluster of industries and IT enterprises such as Noida, Greater Noida, Gurgaon, Rajarhat and Salt Lake City? India Inc must take some initiatives to set up captive power plant for all industrial/commercial cum residential complexes. With opening up of power generation, transmission, and distribution, the business can be lucrative. The open access system whereby anybody can sell power to anybody, the creation of a National Tariff commission and independent state regulatory commissions will go a long way to make India power sufficient.
Privatisation of power supply such as one in national capital has certainly improved condition. Losses have reduced even after political constraints. Technologies are getting in to assist the power management.
Let us hope it comes fast and lasts.
PS Another View
Ultra mega projects may not be a powerful idea
- Indra
Category: Government Policy/Administration |
Leave a Comment