Even as India’s private-sector capital expenditure in the current fiscal is estimated to be 37% higher than the average of the previous three years, the power sector will see a much sharper increase, reports Saikat Neogi.
A policy thrust by the government seems to have ended a long investment stagnation in the thermal power generation caused by the twin balance sheet crisis.
While reports suggest credit flows to thermal power ventures have picked up (transmission sector had gathered momentum even earlier), Motilal Oswal said consensus estimate of the power sector’s capex (which includes renewable energy) in the current year is Rs 125,200 crore , up 115% over the average level in the previous three years.
This will take the sector’s share in total private capex to 15.6%, second only to oil, gas and consumable fuels (35.2%).