India is trying to expedite capacity addition in the power sector to meet the electricity demand of a fast-growing economy. However, it is hobbled by constraints like inadequate availability of raw materials for power equipment manufacturing and a shortage of skilled manpower.
Differing equipment standards also pose a challenge in adding commensurate capacity for transmission and distribution of generated electricity and adopting the Smart Grid technology, says a leading industry body.
India has drawn up ambitious capacity addition target for the coming years. Cold-rolled grain-oriented silicon (CRGO) steel is a key raw material for the power equipment industry. However, India does not have a single plant to manufacture CRGO steel. As a result, domestic manufacturers have to depend on imports to meet the requirement of this critical input. That leads to delay in equipment delivery and project commissioning.
?India has envisaged adding 100 giga watt (GW) capacity during the coming 12 th plan with an estimated investment of $300 billion. That entails requirement of 3.5 lakh tonne CRGO steel a year. But India does not have even a single CRGO manufacturing plant,? says Vimal Mahendru, president, Indian Electrical & Electronic Manufacturers’ Association (Ieema).
The shortage of skilled manpower could prove a drag on the growth of the power sector. ?While there is enough human force in the country, right talents and skills for the power sector are grossly inadequate,? Mahendru said.
The fact that utilities in India follow different power equipment standards also complicates the matter. ?Every state utility has its own specifications for power transmission and distribution equipment. The challenge for the industry is to comply with different equipment specifications and still remain cost competitive. This could also come in the way of adopting the Smart Grid technology due to the lack of interoperability in equipment installed by various utilities,? Mahendru argued.
Electricity is a critical input for economic growth. Even the sunrise IT industry needs electricity to deliver. Given that, the continuing power shortage has serious implications for economic growth and job creation.
?You cannot expect to keep developing and not provide electricity to people,? Mahendru said.
About 400 million people in India still do not have access to electricity and depend on fossil fuels and bio-mass for lighting and cooking. This has huge environmental costs. Besides, absence of grid-connected electricity supply in rural areas has also constrained industrial growth and job creation in these areas, leading to large-scale migration to major cities. This puts pressure on the infrastructure of these cities.
India needs to expedite power generation capacity addition if it has to make its economic growth equitable. ?Not providing electricity is like depriving people of the opportunity to become a part of India?s economic growth story,? the Ieema president said.