Industry at a Glance
Demand for engineering, procurement and construction services in the power transmission lines and power distribution businesses is largely dependent on development, demand and new investments in the power generation, transmission and distribution sectors. For FY 10, India faced an energy shortage of approximately 11.7% of total energy requirements and 13.3% of peak demand requirements. Over FY 00 – FY 10, the peak deficit has grown from 6.2% to 13.3%. In order to accelerate and upgrade the Indian T&D infrastructure, the Government of India consolidated various distribution schemes during the Xth FYP including the Accelerated Power Development and Reforms Program (“APDRP”) and Rajiv Gandhi Grameen Vidyutikaran Yojana (“RGGVY”) schemes.
Thus there are several emerging opportunities for EPC services in Indian power sector, amongst which the major power sector thrust areas by Ministry of Power (MoP), Government of India (GoI) are:
- For the 11t h five Year Plan, total estimated investment opportunity is Rs 908334 Cr (USD 216 Billion) CRISIL India figures. Break up of which includes USD 145 Billion in Generation Sector (Includes Non Conventional Energy Resources) & USD 101 Billion in Transmission & Distribution Sector.
- Govt. of India's vision “Power for all by 2012” leading to allocation of Rs 28000 Cr under 11th Five Year Plan for building Rural Electrification infrastructure of 150000 Villages and 2,35,00,000 Below Poverty Line Households under Rajiv Gandhi Grameen Vidyutikaran Yojna (RGGVY).
- Hydel Power potential of 150000 MW untapped on pan-India basis as accessed by MoP. This would entail building of associated power Transmission & Distribution Infrastructure. Energy Independence a major initiative launched by MoP and with the Nuclear Deal approval, huge investments are foreseen in nuclear power, both in terms of technology and manufacturing capabilities.
- Energy Independence a major initiative launched by MoP and with the Nuclear Deal approval, huge investments are foreseen in nuclear power, both in terms of technology and manufacturing capabilities.
- To facilitate the interregional power transmission capacity, available infrastructure being upgraded from 17000 MW to 37000 MW. Besides this, interregional Power Transmission Network capacity additions of 100000 Circuit Kilometres planned in the 11th Plan.
- Plans have been frozen for upgradation/augmentations of existing Sub Transmission & Distribution Infrastructure. Investments of Rs 287000 Cr are foreseen during the 11th Plan.
- 12th Plan envisages expenditure of approximately Rs. 4,00,000 Cr in Distribution and Rs. 2,00,000 Cr in Transmission.
- Major Initiatives launched by MoP is restructured APDRP-II under which Rs 50000 Cr has been earmarked for building up of IT infrastructure of Discoms for effective management of Distribution Losses.
A2Z Group is fully geared up to meet with such challenges and is confident of being a major contributor in building the Transmission & Distribution infrastructure of the Indian Power Sector.