Revive with strategy

“Subsidy should directly be related to products manufactured in India,” says, Siddharth B Deliwala, Managing Partner, Poliplast Cables
 Power industry is undoubtedly the backbone of any nation. All development is directly or indirectly connected with the power industry. Factories, offices, institutions, residences and agriculture all need uninterrupted power to perform at optimum levels and even to progress. India is one of the countries where even the metro cities face power outages, conditions in the rural sector is even in a worse condition.
“Last decade of UPA government we saw many projects been announced but only a handful of them actually been completed. Projects are literally stalled or haven’t even started because of multiple reasons like pending project clearance (from multiple ministries), inadequate timely funds from government, uninterrupted or non-committed fuel supply issues, has all played a major role in slow momentum in the power industry,” states Siddharth B Deliwala, Managing Partner, Poliplast Cables.
Explaining the major roadblocks for Indian power sector, he says, “In case of alternative and renewable power sector, cost has been a major factor restricting its desired growth. Dumping by Chinese products has also been a cause of concern for Indian power equipment manufacturers.”
Impact on businessLow demand and requirement due to stalled and unfunded projects has a direct impact on businesses of power sector. “Continuous dumping of Chinese products has weakened the local manufacturing base, as not only that particular product manufacturer gets affected, the impact in on the complete supply chain,” Deliwala says. “Notably SMEs face a major risk due their scale of operations.”
Expected short term measures The Modi government has expressed its commitment towards “Make in India” initiative. However, Deliwala observes, “As of now very little impact has been visible in the domestic manufacturing base, major momentum is required here. Though world economic slowdown is also a factor responsible, but with immediate adequate corrective action there can be a major boost to the economy as well as the power sector, he adds.
According to Deliwala, “Immediate attention is required to all stalled and uncleared projects, proper funding commitment to existing and new projects, planning future projects with better scope of implementation, heavy anti-dumping duty on Chinese products and also on products been imported and assembled in India, committing percentage purchase reservation from SME manufacturers, will all have a broad impact not only on the entire power industry but also on the Indian economy.”
Fuel supply issues also need to be properly handled, the reallocation of coal blocks by Modi government is a very impressive step towards tackling this problem, he opines.
Strengthen the local power sectorIndia can be self reliant in power and energy sector with a boost in renewable energy generation. Deliwala observes that the current cost to return ratio is not feasible hence fewer companies and individuals are investing in the same, major subsidy with lesser hindrance in clearing the subsidy can also be an answer for India’s power sector needs.
To ensure sustainability in the power sector, he suggests, “Attention should also be made that the local power sector industry is not left out here, subsidy should directly be related to products manufactured in India.”

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Revive with strategy

“Subsidy should directly be related to products manufactured in India,” says, Siddharth B Deliwala, Managing Partner, Poliplast Cables
 Power industry is undoubtedly the backbone of any nation. All development is directly or indirectly connected with the power industry. Factories, offices, institutions, residences and agriculture all need uninterrupted power to perform at optimum levels and even to progress. India is one of the countries where even the metro cities face power outages, conditions in the rural sector is even in a worse condition.
“Last decade of UPA government we saw many projects been announced but only a handful of them actually been completed. Projects are literally stalled or haven’t even started because of multiple reasons like pending project clearance (from multiple ministries), inadequate timely funds from government, uninterrupted or non-committed fuel supply issues, has all played a major role in slow momentum in the power industry,” states Siddharth B Deliwala, Managing Partner, Poliplast Cables.
Explaining the major roadblocks for Indian power sector, he says, “In case of alternative and renewable power sector, cost has been a major factor restricting its desired growth. Dumping by Chinese products has also been a cause of concern for Indian power equipment manufacturers.”
Impact on businessLow demand and requirement due to stalled and unfunded projects has a direct impact on businesses of power sector. “Continuous dumping of Chinese products has weakened the local manufacturing base, as not only that particular product manufacturer gets affected, the impact in on the complete supply chain,” Deliwala says. “Notably SMEs face a major risk due their scale of operations.”
Expected short term measures The Modi government has expressed its commitment towards “Make in India” initiative. However, Deliwala observes, “As of now very little impact has been visible in the domestic manufacturing base, major momentum is required here. Though world economic slowdown is also a factor responsible, but with immediate adequate corrective action there can be a major boost to the economy as well as the power sector, he adds.
According to Deliwala, “Immediate attention is required to all stalled and uncleared projects, proper funding commitment to existing and new projects, planning future projects with better scope of implementation, heavy anti-dumping duty on Chinese products and also on products been imported and assembled in India, committing percentage purchase reservation from SME manufacturers, will all have a broad impact not only on the entire power industry but also on the Indian economy.”
Fuel supply issues also need to be properly handled, the reallocation of coal blocks by Modi government is a very impressive step towards tackling this problem, he opines.
Strengthen the local power sectorIndia can be self reliant in power and energy sector with a boost in renewable energy generation. Deliwala observes that the current cost to return ratio is not feasible hence fewer companies and individuals are investing in the same, major subsidy with lesser hindrance in clearing the subsidy can also be an answer for India’s power sector needs.
To ensure sustainability in the power sector, he suggests, “Attention should also be made that the local power sector industry is not left out here, subsidy should directly be related to products manufactured in India.”

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