Indian Power Industry

India has the fifth largest electricity generation capacity in the world. The total installed capacity of India is ~150,000 MW, of which majority of generation, transmission and distribution capabilities with either public sector companies or with State Electricity Boards (SEBs). Only ~15% capacity is from the private sector, though this is now beginning to increase. Market research suggests ~65% of India’s total installed capacity is contributed by thermal power with the Western and Southern regions each accounting for ~30%. Due to unbalanced growth and rural-urban disparity, only ~40% of rural household have access to electricity versus ~80% of urban households. Key players include National Thermal Power Corporation Limited, Nuclear Power Corporation of India Limited, North Eastern Electric Power Corporation Limited, Power Grid Corporation of India and Tata Power.

Growth potential
The Indian power sector is experiencing a large demand-supply gap. At present, the energy shortage in the India is ~10% but there are States where the energy shortage is as high as 25%. To combat this, over 80,000 MW of new generation capacity is planned in the next five years. A corresponding investment is required in Transmission and Distribution networks.

The Indian Ministry of Power has set a goal, “Mission 2012: Power for all” and released a comprehensive sector development blueprint. The main objectives, in addition to providing 100% access to power, are to provide sufficient power to achieve targeted GDP growth rate of 8%, provide reliable and good quality power and to enhance commercial viability.

A huge capital investment of about US$ 200 billion is required to meet Mission 2012 targets. This has welcomed numerous global companies to establish their operations in India under the famous PPP (public-private partnership) programs. Additional massive capital investment is further required over the subsequent years with the country’s power requisite expected to...