Thermal Power industry faces fundamental challenges

Thermal Power Sector in India in the past 5 years have seen a host of issues like coal scam, legal issues etc., but the main four which hindered the sector are the land availability, shortage of fuel and price hike in imported fuel/ drying out of gas in KG basin, environment and forest clearance. The above four had strangled the sector and is yet to recover after the change in government. Now, even the government is finding tough to acquire lands for the project and is hoping for the new land acquisition act.

Apart from it, the state electricity boards in deep financial trouble are yet to cut distribution losses on par with developing economies. In India, the transmission losses are around 25%, while it is 15% in other countries. The reasons are a variety with inaccurate billing, pilferage, theft, sparsely distributed power over rural area and inadequate infrastructure.

Under the new leadership, Mr. Piyush Goyal, the projects are expedited with speedier clearances and follow up action but the fundamental issues are posing a bigger challenge.

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