Bangalore: The power sector, which has immense growth potential, has come a long way since reforms were introduced in 1991, said S.N. Agarwal, Chairman of Bhoruka Power Corporation Ltd. and Chairman of the Federation of Indian Chambers of Commerce and Industry (FICCI), Karnataka State Council.

He was speaking at a curtain-raiser for "India Electricity 2006" here on Saturday.

India Electricity 2006 is an international exhibition and conference on power industry organised by the Ministry of Power and FICCI in association with the Indo-German Chamber of Commerce, Indian Boiler Manufacturers' Association and the National Council of Power Utilities. The exhibition will be held in New Delhi from May 11 to 13.

Investor interest

Making a presentation on India Electricity 2006, FICCI Deputy Secretary General Rajan Kohli said the sector has grown on all parameters in the past few years. The revenue gap has decreased, and this has helped revive investor interest. Mr. Kohli said that since the GDP is set to grow at eight per cent, the power sector must record the same growth rate. The growth rate of the sector is five per cent. Policy initiatives, including mega projects, and reforms taken up after the adoption of the Electricity Act, 2003 have aided the sector's growth, he added. As part of India Electricity 2006, three road shows have been planned in the U.S., Canada, and East Asia in March. Buyer-seller meets will be held, Mr. Kohli said.

Joint Secretary in the Ministry of Power Arvind Jadhav said the meet is a platform for power stakeholders and investors.

He said distribution companies across the country have increased their revenue and reduced losses. "The meet is being held now as the building blocks for development are in place. It discuss ways to channelise investments into the sector. Attempts are being made to introduce franchisees and this is where the private sector can play a major role," he said.

Investments

Secretary of the Union Power Ministry R.V. Shahi spoke about the need to facilitate a conducive environment for power sector investments.

He said the Government is targeting a double-digit growth rate. "We are working towards supplying power without disruptions and load shedding, and reducing cost of generation. Over the next two years, growth should be nine per cent," he said.

The sector's investment potential had dropped as most power generation companies were not receiving payments from distribution companies. "Now, all power generating companies are getting paid in full by transmission and distribution companies," Mr. Shahi said.

Printer friendly page  
Send this article to Friends by E-Mail