Indian Power Sector Attracts Deal Hunters

By admin • March 30th, 2010

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Availability of power generation and distribution is one of the important ingredients for industrial growth and the country’s ability to be self-reliant. It is an important infrastructure facility without which any industrial activity cannot be thought of in modern times.

The Indian power sector has an attraction factor that is pulling some of the power giants of the world including; Alstom, Siemens, Areva and L&T to supply power infrastructure and engineering services.

Corporate deal hunters are clamouring to gain a slice of this essential, yet lucrative sector and the opportunities are flowing through to the micro, small and medium enterprises (MSMEs), engaged in providing ancillary machinery and technical support, that have seen their businesses revived.

A number of growth opportunities have seen the light of day because of the government’s proactive stance to involve private firms in the clamour to gain lucrative contracts in the power infrastructure sector.

The increase in the demand of electricity consumption in India’s towns and cities has been fuelled by a growth in rural migrants, which in turn has led to an expansion in town and city limits to accomodate the increasing population.

In line with this unprecedented growth, more and more industries have mushroomed to cater to the needs of the inhabitants in these areas of growth. The government is fully aware of the need  to upgrade the existing power infrastructure which has opened up opportunities for private firms in mega-power generation projects.

Not forgetting India’s rural areas, the government has embarked on a major initiative to allow access to electricity in remote regions of India through Remote Rural electrification and the establishment of an integrated National Power Grid by 2012. Implementation of the RGGVY (Rajiv Gandhi Grameen Vidyut Yojana) programme by the government to supply elctricity to  villages envisages a spend of ~Rs. 160 bn over the 11th Plan period.

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