4 Crucial Things about Power Transmission in India

If we look at the scenario of power transmission in India, it is worth noticing that it is indeed in a crucial juncture with both government and private players having significant roles in different capacities. There are quite a few constraints like unavailability of raw materials, environmental hazards, lack of infrastructure and finances and fund-tie-ups. This has resulted in a few projects for the past few years. However, the enactment of Electricity Act in 2003 has helped in the development of the power transmission sector.

Implementation of New Infrastructure

Looking at the power transmission sector in India, it is noted that large transmission corridors need to be erected to evacuate power from the surplus to the deficit regions. There will be significant enhancement in construction activities; larger projects are planned in the North East region especially in Sikkim which has noticed a surplus in electricity transmission in the recent years. The transmission sector will also need to increase private sector participation or PSP to a greater extent to meet investment targets and reduce implementation challenges.
 
The power generation scenario

During FY14-15, the power generation was estimated at 1048 BU which is 2.3% above the generation target of 1023 BU. The government has set a target of setting 1098 Bus in the entire country for 2015-16. The center is likely to contribute for 411 BUs. And the state will contribute for 401 BUs. Government has planned for a national grid and large transmission corridors completely dedicated to different regions. In order to boost the transmission and distribution policies, the government is also granting both connectivity and open access regulations.

Government Initiatives

Looking at power transmission in India, it is worth mentioning that the government is set to allot mines to state entities to promote commercial mining. Coal blocks will be allocated to private companies after the passing of Coal Mines Special Provisions Bill in the year 2015. The government has initiated to assign 204 blocks in the most transparent manner. There are 29 blocks which have been auctioned, and there are 38 more which will be allocated to state-owned entities. Government is trying to act in a transparent manner in order to offer linkage and auction the coal blocks. Apart from auctioning the coal blocks, government has also taken initiative to start 5 new ultra mega power projects. Investments up to 1 lakh crores is likely to happen for these mega projects which is good news for the power transmission industry.

Investment in power transmission industry

The investment scenario is positive in the power transmission sector; the liberalization policies have helped in higher investment flow. The Ministry has set up a goal of adding 93,000 MW in the years between 2017 and 2022. The Power Ministry is also working on a proposal of disbursing 4 lakh crores loans to distribution companies to reduce their liabilities. The distribution companies are facing cash crunch for quite some time now; Union Ministry is trying to minimize the loss amount which has come up to Rs 60,000 crores. The government has decided to take the loan burden of eight states under new financial restructuring plan and work on it.