march 2005 indian power industry unprecedented growth opportunity
DESCRIPTION
March 2005 India - An Introduction Population States/UTs Geographical Area Languages recognised Business language Per Capita Income** GDP** Over 1 bn mn sq kms 22 English US$ 534 US$ 650 bn **(at factor cost & at current prices) 1USD=43.54 INR (as on July 4, 2005) Source:CSO StatisticsTRANSCRIPT
March 2005
Indian Power IndustryUnprecedented Growth
Opportunity
March 2005
Power
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
March 2005
India - An Introduction
Population
States/UTs
Geographical Area
Languages recognised
Business language
Per Capita Income**
GDP**
Over 1 bn
35
3.3 mn sq kms
22
English
US$ 534
US$ 650 bn**(at factor cost & at current prices)
1USD=43.54 INR (as on July 4, 2005)
Source:CSO Statistics
March 2005
India - Fast pace Growth
Largest democracy
4th largest economy by PPP index
6th largest energy consumer
ForEx reserves skyrocket from US$ 42 bn (2001) to
US$ 133 bn (February, 2005)
GDP growth to continue between 6-8%
3rd largest economy by 2050: Goldman Sachs
Leading in IT & BPO
Oil & Gas and Biotechnology sunrise industries
March 2005
India - Leading the world
Hero Honda - largest manufacturer of motorcycles
Moser Baer - 3rd largest optical media
manufacturer in world
Pharmaceutical Industry - 4th largest in world
Walmart, GAP, Hilfiger sources more than
USD 1bn worth apparel from India
100 Fortune 500 have set R&D facilities in India
including GE, Delphi, Eli Lilly, HP, Heinz and Daimler
Chrysler
March 2005
Power
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
March 2005
Power Sector
Installed generation capacity 112 GW
Total generation 531 billion units
CAGR 5.8%
Per capita consumption 355 kWh
T&D network 5.7 million circuit kms
Energy power deficit 9%
Peak power deficit 12%
March 2005
Growth Potential
Investment of US$ 90 billion in T&D infrastructure
Addition of 100,000 MW by 2012
Source: Blue Print for Power Sector, Ministry of Power
March 2005
Generation Capacity Composition
Installed capacity targeted to double by 2012
Thermal69%
Hydro power & wind power28%
Nuclear Power3%
Total Generation Capacity
Source: 16th Electric Power Survey, Central Electricity Authority
March 2005
Power
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
March 2005
Domestic Players
Public Sector Generation Transmission DistributionDVC NEEPCO National Hydro Power (NHPC) Nuclear Power (NPC) National Thermal Power(NTPC) BBMB Power Grid (PGCIL)
Private SectorReliance Energy RPG Group Tata Power Torrent
March 2005
Foreign Investments
Foreign Major Investment Capacity(MW)
CLP Gujarat PEC 655
PSEG &MarubeniCorporation
PNP PowerGenerationCompany Ltd
330
MarubeniCorporation
BPL PowerProjects
520
CMS Energy GVK Industries 235
Doosan HeavyIndustries andConstruction
NTPC 660
March 2005
Power
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
March 2005
Generation Opportunities
Investment requirement of US$ 200 billion by 2012
By 2012 demand for electricity to double
100,000MWAdditional generation capacity required
21% private sector capacity addition
Source: 16th Electric Power Survey, Central Electricity Authority
March 2005
Private Power Policy
36 projects commissioned in private sector
Another 6 projects underway
55 projects under various stages of development
7000 MW
3000 MW
27,800 MW
March 2005
Transmission & Distribution Opportunities
Transmission
Distribution
US$ 16 bn investment required by 2012*
US$ 5 bn private investmentsthrough ITPCs and JVs
Imminent private sector participation in AP & Karnataka
Opportunities in power distribution companies
* Source: PGCIL
March 2005
Trading Opportunities
Stage set for Active Bulk Supply Market
2400 MW bilateral trade in six months
USD 0.2 bn electricity traded by PTC in six months
March 2005
Power
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
March 2005
Indian Achievement
Share in world electricity generation increasedfrom 2.4% (1994) to 3.6% (2002)
Sixth in world electricity generation andthird in Asia - Pacific (2002)
March 2005
States - Progressing markets
Interim pool marketVertically Integrated Unbundled / IPP Market
1.Reforms studies initiated and SERC formed
2. G & T unbundled and corporatised
3. T & D unbundled and corporatised
4. Distri. Pvtztioninitiated & IBsappointed
5.Distribution privatised
Power Reform - State Economy Matrix
(0.2)
-
0.2
0.4
0.6
0.8
1.0
1.2
0 1 2 3 4 5 6
Stage of Reforms
Econom
y Size Index
TN
GujaratKerala
Punjab
Maharashtra
Uttar Pradesh
West BengalMP
RajasthanHaryana
Andhra Pradesh
KarnatakaDelhi
Orissa
Interim pool marketVertically Integrated Unbundled / IPP Market
1.Reforms studies initiated and SERC formed
2. G & T unbundled and corporatised
3. T & D unbundled and corporatised
4. Distri. Pvtztioninitiated & IBsappointed
5.Distribution privatised
Power Reform - State Economy Matrix
(0.2)
-
0.2
0.4
0.6
0.8
1.0
1.2
0 1 2 3 4 5 6
Stage of Reforms
Econom
y Size Index
TN
GujaratKerala
Punjab
Maharashtra
Uttar Pradesh
West BengalMP
RajasthanHaryana
Andhra Pradesh
KarnatakaDelhi
Orissa
Liberalised Competitive Market
2003-04 recorded reduction of over USD 1.7 billionin SEB losses in as many as 11 states
March 2005
Regulatory Reforms
Tariff rationalisation
Risk mitigation
Demand side management
Efficient market structure
Environment concern
Reduction in losses based
on annual targets
March 2005
Electricity Act - 2003
Power generation completely delicensed
Conducive atmosphere for private
investments in generation,trading & distribution of
electricity.
Competitive power markets
Revolutionising the power scenario
Post passage of Bill led to surge in investment2002-03 4%2004 16.2% (1/3rd of total project investment)
March 2005
Fiscal Incentives
FDI 100% allowed in Generation,
Transmission and Distribution
Tax holiday On profits on investments during
block of 10 years in first 15 years
Capital import Waived for mega power generation
duties projects
March 2005
Key Features• A financial Special Purpose Vehicle (SPV) to be established to finance infrastructure projects.
• Electricity to 1.25 lakh villages.
• Creation of a rural electricity distribution backbone envisaged, with a 33/11 KV substation in each block and at least 1 distribution transformer in each village.
Union Budget 2005-06
March 2005
Power
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
March 2005
Contact in India
Ministry of Power
Shram Shakti BhawanNew Delhi
Tel 23711316, 23710271Fax 23721487Website www.powermin.nic.in
March 2005
Contact in India
Confederation of Indian Industry (CII)
249-F, Sector 18, Udyog Vihar Phase IVGurgaon 122015
Tel 0091 124 5014060-67Fax 0091 124 5014080/5013874E mail [email protected]