The Stress Marks!
India's power sector is in a catch-22 situation. A sound analysis of the power sector affirms that the sector is in the ICU where 78,000 MW of projects are under stress; and approximately Rs 1,200 billion worth unviable projects and PPAs are signed for a mere 7,000 MW.
Loss-making discoms to be denied loans
We have already liberalised the Electricity Act and it provides for franchisees. However, the charging station is not selling electricity, but giving you a service. It is actually buying the electricity from a discom.
GVK Power inks supplementary PPA with Punjab bod
GVK Power & Infrastructure Ltd has signed a Supplementary Power Purchase Agreement with the Punjab State Power Corporation Ltd, for its project located at Tarn Taran in Punjab. This comes in the backdrop of GVK Power (Goindwal Sahib) Ltd, a subsidiary of GVK Power, receiving a letter of award for long term coal linkage for the power plant, which was earlier impacted due to lack of fuel.
Scale up Demand, Unlock Logjam
India's power sector is undergoing structural changes with an unprecedented scale-up in renewables, Ujwal Discom Assurance Yojana (UDAY) implementation at distribution companies (discoms/SEBs), uncertainties over offtake arrangements and pressure on promoters/lenders to divest assets to avoid bankruptcy.
Racing Ahead of Demand
The power sector, over a period of six months, has witnessed large scale investments in the power generation segment leading to an increase in the installed capacity to 329 GW as on September 30, 2017 from 132 GW as on March 31, 2007.
Road Ahead for New TPPs in India
Millions of Indians are yet to see the light of the day, without electricity connection. Pace of demand growth is far behind that of supply. The fossil fuels are being relegated and renewable sources are inducted in a big way.
TPPs for Sale
Power sector seems to have seen hectic activity over the last three years - in terms of generation, transmission and distribution of power and efforts to create and bolster demand. However, with every addition of a megawatt in power generating capacity the problems of the sector got accentuated.
Strategists look for scale & operational optimisation in M&A
Strategic investors derive value by bringing in much valued technical and implementation capability. Strategists are more interested in a portfolio which gives them necessary scale and possible operational optimisation that can help them drive returns.