Coal shortage and weak transmission network are likley to be major dampeners in achieving Prime Minister Narendra Modi’s ambitious target of electrifying all households in the country by 2018 end. The short supply of coal may not only add to the concerns of the power industry but also act as a roadblock in likely improvement in thermal power capacity utilisation, CARE Ratings report said. “Robust Grid and supply transmission network require sizable investments over the next 12-18 months. Supply transmission would be vital in connecting un-electrified households in rural areas thereby improving demand for power,” the report also said.
The government launched Saubhagya scheme with much fanfare in September 2017 with a target of 100 percent electrification in the country. Sixteen percent of the households have been electrified as on 23 May, 2018 out of the 37.9 million un-electrified households of the scheme. The government has fixed a target to connect the remaining households by the year end.
In the fiscal year 2019, electricity generation is expected to grow by 6-7%. As millions of households get connected to the grid in the coming months, rural electrification is expected to drive demand for electricity, CARE Ratings. “AT&C losses are expected to improve, closer to 15% target set by the Union Government, as state discoms focus on achieving 100% distribution transformer metering (DT Metering) by the end of FY19,” the report further said.
PM Narendra Modi had tweeted last month, “28th April 2018 will be remembered as a historic day in the development journey of India. Yesterday, we fulfilled a commitment due to which the lives of several Indians will be transformed forever! I am delighted that every single village of India now has access to electricity.”
Renewable capacity accounts for 20 percent of total installed capacity and expected to reach 25 percent by 2020, the Union Government needs to incentivize and provide viable operational environment to renewable energy developers, the report said.