Privatisation of the public sector-dominated telecom sector has changed the way people communicate and transfer data in the country. Now the task of fulfilling the dream of ?power for all? seems to be falling increasingly on the private enterprises.
The government-dominated power sector has been opened up for private investment, including FDI, in generation, transmission & distribution, and power equipment manufacturing. The enabling policy changes were brought about by the Electricity Act, 2003 and National Electricity Policy, 2005. The government initiative has received enthusiastic responses from the private sector that has only 13.5% share in the over 1.45 lakh mw installed power generation capacity, dominated by the states (52.5%) and the Centre (34%).
Though we are going to fall short of the ambitious target of over 78,000 mw of new generation capacity in the 11th Plan period ending 2012, the mid-term projection of over 62,000 mw capacity addition would be an all-time record of sorts. It would be more than the installed capacity created during the last three Plan periods, thanks to the private sector. The earlier estimate of contribution from the private sector in 11th Plan was 15,000 mw. The mid-term appraisal has raised it to 20,000 mw of installed capacity. Largely, public sector dithering resulted in missing the target.
Tata Power Corporation, India?s largest private power utility, has announced massive investments in the power sector. It is setting up an ultra mega power project at Mundra, Gujarat. Anil Ambani?s Reliance Power Ltd is also making huge investments in the sector. Besides, companies like BGR Energy and C&O group are setting up merchant power plants.
Distribution licences for several cities are already with the private sector. National and multinational companies like L&T, Alstom, Toshiba and Ansaldo have entered the Bhel-dominated power equipment manufacturing sector. The renewable energy sector is entirely driven by the private sector. In this field, the government plays only the facilitator?s role by framing policies and offering incentives.
?joseph.vackayil@expressindia.com
