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.
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.
Problem of Plenty
India has become a power surplus nation, albeit with certain caveats. In its wake, it has changed the whole paradigm of generation sources, with solar and wind hogging the spotlight and coal being relegated a bit.
Growing trend is switching from long term PPAs to short term contracts
We have already seen an increase in appetite for short term power from the utilities following the financial leeway brought about by the debt restructuring. Over the long term, sustained improvement in distribution operations as envisaged under UDAY, could bring significant improvement.
Capacity addition in Renewable Energy (RE) has shown a steady progress in the past decade. Though wind energy is leading the RE basket, solar, biomass and small hydro have made significant progress in the last few years.
Investment in T And D networks is the need of the hour
In the recent past, we saw a lot of investment in power generation, but not sufficient in power transmission and distribution (T&D). Investments in transmission have caught up more recently, but the lag has meant that even though we have surplus generation capacities, not all the demand is always served.
India-US Trade | Walking the line
There is a natural alliance between the US and India, and both governments have committed to increase the bi-lateral trade through economic co-operation and support.
Big push to Nuclear
The Union Finance Minister Arun Jaitley has turned his focus on to nuclear energy as a source of power generation in a bid to diversify the power sources, in his Budget 2016-17, presented on February 29, 2016.