Wednesday, January 31, 2007

Why Invest in India - Electric Power Infrastructure

In my previous blog I had written about the opportunities for investors in Electric power generation sector. The Government of India has woken up to the need for investments in power distribution and transmission sector as well. As a first step, the government plans to disinvest 5% of its equity in three power distribution companies: Power Grid Corporation, Rural Electrification Corporation, and National Hydroelectric Power corporation.

This is a very significant move by the government. This implies that the workings of these public sector companies will now come under the scrutiny of the private share holders and eventually private participation in management of these companies will be seen.

Realizing the need for private investments in power generation, transmission and distribution, the government of India is ending the monopoly of its power distribution business in April 2007.

Taking an early lead in exploiting the reforms in power transmission & distribution sector, Areva T&D India Ltd has worked with NTPC to setup a 765KV switchyard for 3000 MW power plant at Sipat in Chhattisgarh. Areva T&D India Ltd partnered with NTPC in constructing and maintaining a cutting edge technology switchyard.

This collaboration is an important milestone. This signifies how private sector can work in the power generation, transmission and distribution business in India. As India continues on the reforms path in electric power, more opportunities will open up for private investors to tap into the growing market for electric energy in India.

1 comment:

wei said...

What is the progress of the 765KV switchyard and the 3000MW power station after nearly 2 years?