Brightening up Households
Uninterrupted and quality power supply is a precursor to economic development for any country. Electricity transforms people's lives and spurs them towards a better future.
Light at the end of tunnel
The Power Sector has the lion´s share of 20 per cent in the industrial debt of Rs.26 trillion (lakh crore) in the country as of August 2016, followed by metals and metal products (16 per cent), roads (7 per cent) and textiles (7 per cent), and these four sectors account for about 50 per cent of the gross credit deployed in industries
Ushering in a new Dawn
Ujwal Discom Assurance Yojana (UDAY) announced in the first week of November 2015 to overhaul the operations of distribution companies (discoms) though a slew of carrots and sticks has evoked hopes that the scheme could usher in a new dawn for the Indian power sector, which has been saddled with numerous problems.
UDAY will reinitiate siGNing of PPAs
UDAY will result in liquidity improvement and sharp reduction in discom losses, thus improving the ability of discoms to procure power and reinitiate signing of long-term power-purchase agreements (PPAs).
Loans in jeopardy!
As much as Rs 75,000 crore of loans - or nearly 15 per cent of the aggregated debt to power generation companies - are at risk of becoming delinquent in the medium-term.
The genesis of coal mining
The bidding framework needs to have adequate risk mitigation measures in place for the bidders as well as procurers. None of us want to see another failed effort leading to cascading failure of assets from mines to power plants.
Industry suffers from low margins
In the recent past, coal shortages, scams, hike in prices of imported coal, lack of land availability, policy logjam and shortage of labour together paralyzed the prospects of the power sector and other heavy industries. In fact all the industrial sectors were having virtually no growth.
The limited tariff hikes so far by SERCs for FY 2014-15, coupled with rising subsidy dependence to the tune of ` 72,000 crore for the sector as a whole, remains a concern for sector experts. The turf war over imposition of anti-dumping duty (ADD)
Outlook Power sector: Consolidation to continue
In the last eight months of FY14, generation growth was faster at 5.3 per cent than the growth in key demand segments, leading to lower energy deficits. However, improvements in power generation will be driven by increased domestic coal availability post the government initiatives in the coal sector and higher availability and acceptability of imported coal. This could be brought about by lower international coal prices, availability of infrastructure to handle coal and acceptance of imported co
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