IIPM PUBLICATION
In the next 25 years, power generation will have to increase by six folds to sustain India’s growth
Incompetent
regulatory management is surely a spot of bother for every player in the sector. However, the previously mentioned planned investment to the tune of $300 billion (to support the setting up of mega-power projects) Interestingly, nuclear and thermal sectors seem to be the ones that would have heartening returns in the coming months, with the US nuclear deal opening newer avenues for the government, which envisions touching a 40,000 MW power output from the nuclear arena by the year 2020 (from the current 20,000 MW).Also, prospects in areas such as hydro-power, wind and gas have been tapped by Reliance Energy and NTPC. NTPC aims to have a 50,000 MW capacity in the next five years; the company interestingly earned Rs.68,640 million as profit after taxes for 2006-07. T. Sankaralingam, CMD, NTPC, states, “Our strategy is to increase market share from the existing 20% through well conceived plans for quantum growth, expansion and diversification.” And obviously through hydro-power and nuclear plants. NTPC faces stiff opposition in this domain from Reliance and other private parties. Reliance Energy Chairman, Anil Ambani envisions, “The availability of reliable and quality power at competitive rates will play a decisive role in realising a glorious future.” To that effect, he’s not left any quarter exploited, what with a net profit of Rs.8.01 billion for Reliance Energy.
While NTPC and Reliance Energy would face the heat from the most competent compatriots like Tata Power and Neyveli Lignite, one just hopes that this ‘power’ful competition finally results in India tipping away to glory rather than tipping into darkness.
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Source : IIPM Editorial, 2007
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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