Honour contracts, for investment sake!
The good news is that solar power tariff has fallen 80 per cent over the last seven years. Then by all rational expectations, it should have been a celebration time for the government, solar power producers, power sector ecosystem and the consumers.
Positive for coal, marginally negative for solar, wind
In terms of impact of GST on the power sector, it is a mixed bag with the effect being positive for some and marginally negative for others. The reduction in tax rate on domestic coal will provide a relief to coal based power plants in the cost of power generation even after accounting for an increase in capital cost (due to higher tax rates in boiler, turbine, generator segment).
One of the most versatile electrical products with a wide application spectrum ranging across computers, televisions, appliances, automobiles, aircraft, domestic and industrial equipments, power electronics, drivers, UPS; capacitors are not just energy storage devices, but are also used for signal filtering, processing and power conditioning (power factor correction and transient suppression (harmonic filtering).
Coal prices reduce by 2-3% for power sector
Post GST implementation, effective coal prices — notified price plus taxes — have decreased by 2-3 per cent for consumers from the power sector, as the new tax structure abridges several additional taxes.
Cabinet clears coal linkage policy
In a long awaited relief for the thermal power sector, the Cabinet has approved ‘Shakti’ (acronym Scheme to Harness and Allocate Koyla (Coal) Transparently in India), a policy which aims to auction long-term coal linkages to power companies. The move is expected to revive 30 GW of power plants awaiting fuel supply, including those of Reliance Power, Adani Power, Lanco Infratech, GMR Energy, DB Power, CESC and KSK Energy.
We are benefiting from the present and future power sector outlook
Our outlook for the power sector is positive, as in the long run as electricity remains essential to our life. The demand for power will continue to grow at 6-7 per cent and old capacities will be decommissioned. Additionally, the renewable sector, grid strengthening and growth of smart grids will keep the sector busy in the coming years.
Indian Pumps Industry Has Grown Steadily
With the implementation of the norms introduced by BEE, significant amount of standardisation has been brought in place. This has eliminated sub-standard products having lower efficiencies. It is indeed a good step for Indian companies eyeing expansion in the global market.
Moodys changes power sector outlook to stable
Moody's Investors Service and its Indian affiliate, ICRA predicts stable outlook for the power sector over the next 12-18 months reflecting sustained improvement in domestic coal availability, as well as the Indian government's policy initiatives, which is likely to lead to improvements in financial positions of state-owned electricity distribution companies in the next two to three years.