PPP model to remove roadblocks for Indian power sector

“We anticipate a wait period of about 2 years to see this industry back in limelight of investments and progress,” says Krishnan Rajagopalan, Business Unit Head – Solar, Anchor Electricals
 As per the recent report, the utility electricity sector in India had an installed capacity of 275.912 GW as of 31st July even as the country has been grappling with power shortage for over two decades. While the energy sector has undergone through numerous reforms over the last two decades, the disparity exists due to the practices being aligned to the geopolitical conditions as well as socioeconomic variance.
According to Krishnan Rajagopalan, Business Unit Head – Solar, Anchor Electricals, “Non-availability of fuel continues to be a prominent challenge as coal-fired plants account to approximately 60 per cent of grid-capacity, which again are inefficient as the CO2 emission increases.”
The International Energy Agency (IEA) estimates that India will add up to 1,200 GW of additional capacity by 2050. “While the present government has given a key impetus to renewable energy overall for ensuring that alternative power resources can be utilised to optimum, quick implementation is yet to be seen,” he observes.  
The new initiatives such as of Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) are also focusing on reforms in rural power sector by separation of feeder lines (rural households and agricultural) and strengthening of transmission and distribution infrastructure, he adds.
Power sector reforms should also address issues of State Electricity Boards (SEBs), check subsidies and reach to a tariff rationalisation, suggests Rajagopalan. Further he adds, “Continuing with the present structure will put the state distribution companies into even more difficult conditions of financial health which they are already struggling with. For quicker results the participation of private investors can be arranged. The PPP model can go a long way to address these issues.”   Threats from large-scale manufacturesAnchor’s core business is electrical construction materials. The company has ventured into the electrical power generation space with its entry into solar industry space. “Initiatives like smart city projects, compulsory renewable energy adaption by commercial and industrial entities, renewable power obligations for power generation and distribution companies, rural electrification provide a whole new world of opportunities to Anchor, while the non-availability of power for manufacturing could be one of the criteria that can affect our business,” says Rajagopalan.
Inculcating new policiesThe central government plans some measures to revitalise and infuse fresh energy in the sector. “Amendment to the Electricity Act, new renewable energy policy, coal allocation initiatives, restructuring of the state-owned distribution companies, extending participation limits of private companies in the transmission space to build the transmission infrastructure, amendment in the grid code to make a national grid are all being done in the right direction,” observes Rajagopalan. He anticipates that a wait period of about two years to see the industry back in limelight of investments and progress.
Ensure sustainabilityTo ensure sustainability in the power sector some of the long-term measures Rajagopalan suggests include amendment to Electricity Act,  rationalisation of subsidy and slowly withdraw the subsidy of the power sector, create efficiency of transmission and distribution, and increase transmission and distribution network.

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PPP model to remove roadblocks for Indian power sector

“We anticipate a wait period of about 2 years to see this industry back in limelight of investments and progress,” says Krishnan Rajagopalan, Business Unit Head – Solar, Anchor Electricals
 As per the recent report, the utility electricity sector in India had an installed capacity of 275.912 GW as of 31st July even as the country has been grappling with power shortage for over two decades. While the energy sector has undergone through numerous reforms over the last two decades, the disparity exists due to the practices being aligned to the geopolitical conditions as well as socioeconomic variance.
According to Krishnan Rajagopalan, Business Unit Head – Solar, Anchor Electricals, “Non-availability of fuel continues to be a prominent challenge as coal-fired plants account to approximately 60 per cent of grid-capacity, which again are inefficient as the CO2 emission increases.”
The International Energy Agency (IEA) estimates that India will add up to 1,200 GW of additional capacity by 2050. “While the present government has given a key impetus to renewable energy overall for ensuring that alternative power resources can be utilised to optimum, quick implementation is yet to be seen,” he observes.  
The new initiatives such as of Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) are also focusing on reforms in rural power sector by separation of feeder lines (rural households and agricultural) and strengthening of transmission and distribution infrastructure, he adds.
Power sector reforms should also address issues of State Electricity Boards (SEBs), check subsidies and reach to a tariff rationalisation, suggests Rajagopalan. Further he adds, “Continuing with the present structure will put the state distribution companies into even more difficult conditions of financial health which they are already struggling with. For quicker results the participation of private investors can be arranged. The PPP model can go a long way to address these issues.”   Threats from large-scale manufacturesAnchor’s core business is electrical construction materials. The company has ventured into the electrical power generation space with its entry into solar industry space. “Initiatives like smart city projects, compulsory renewable energy adaption by commercial and industrial entities, renewable power obligations for power generation and distribution companies, rural electrification provide a whole new world of opportunities to Anchor, while the non-availability of power for manufacturing could be one of the criteria that can affect our business,” says Rajagopalan.
Inculcating new policiesThe central government plans some measures to revitalise and infuse fresh energy in the sector. “Amendment to the Electricity Act, new renewable energy policy, coal allocation initiatives, restructuring of the state-owned distribution companies, extending participation limits of private companies in the transmission space to build the transmission infrastructure, amendment in the grid code to make a national grid are all being done in the right direction,” observes Rajagopalan. He anticipates that a wait period of about two years to see the industry back in limelight of investments and progress.
Ensure sustainabilityTo ensure sustainability in the power sector some of the long-term measures Rajagopalan suggests include amendment to Electricity Act,  rationalisation of subsidy and slowly withdraw the subsidy of the power sector, create efficiency of transmission and distribution, and increase transmission and distribution network.

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