Role and Participation of Private Companies in Power Sector
Government of India had realized the importance of private sector participation to develop infrastructure and meet the power requirements for present short fall and future needs upto 2030 AD. In this regard Electricity Act 2003 was a turning point and made reforms with regard to the following aspects :
- Removed the need for licence for power generation projects.
- Encouraged competition through international competitive bidding.
- Identified transmission of power lines as a separate activity and invited a wider public and private sector.
- Private sector who will develop power capacity more than 1000 MW were given the benefit of tax holiday for 10 years out of 15 years of operation.
- Allowed 100% FDI.
- Selling the bulk power to the grid or other personal.
- Waiver of import duty on capital goods needed for mega power projects above 1000 MW capacity.
- It is the private sector as the key for India’s power generation both in 12″ five year plan and in future since more projects are going to come up in private sector as compared to public sectors.
- Upto 10 Aug. 2011, 13761 MW (13069 MW Thermal and 692 MW Hydro) was added by the private sector as compared to planned capacity of 17588 MW in 12 plan. It has achieved about 70% of target.
- There are large number of companies engaged in power sector for e.g. Reliance energy. Tata power, Adani power, LANCO, GVK power, RPG group (CESC), International China Light and Power (CLP), Jindal power, Torrento power etc.