The Ind0-US nuclear deal is likely to have favourable impact on plans of power-generating companies intending to set up nuclear power plants

IIPM PUBLICATION

Despite the government’s promise to provide electricity to every family by the year 2012, the Indian power sector’s performance lies in a crippled state. Despite investments being pegged at $300 billion from 2002-2012 to double the capacity of power generation, the power sector leaves a lot to be desired. This sector has not remained in sync with the Indian economic growth, resulting in a killing 8% shortage currently in energy and a 13% deficit in peak power.

The formulation of the Electricity Act, 2003, managed to offer a laissez-faire structure for the development of this sector, calling for a broader involvement in the Indian power space. The outcome of this Act brought the influx of global corporations such as Electricite de France, Alstom and AES, in addition to homegrown entities such as NTPC, Tata Power and Reliance Energy. However, at a recent conference on the power sector that had the state Chief Ministers present, Prime Minister Manmohan Singh addressed the defalcations of this sector that is witnessing numerous theft s. And with an alarming 44% of the household demand of electricity going unaddressed, the power scenario looks a messy affair.

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Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative