CNBC-TV18 and Alstom discuss 'Challenges faced by the Indian Power Generation Market'

Media News

Mumbai, May 23, 2011

CNBC-TV18, India's No.1 business medium, in association with Alstom, a world leader in transport infrastructure, power generation and transmission, held an exclusive panel discussion to examine the ground realities and varied complexities surrounding the Indian power industry. Aimed at addressing the challenges in the industry, the forum brought together some of the most revered names from the Indian Power sector on one common platform. Leading industry luminaries and subject-matter experts such as Ms. Sudha Pillai, Mr. Arup Roy Choudhury, Mr. H. D. Khunteta, gathered together to discuss and deliberate the problems of a power crisis in the Indian market and also the opportunities available in one of the fastest developing economies of the world.

The panel discussion comprised of eminent panelists such as Ms. Sudha Pillai, Member-Secretary of the Planning Commission; Mr. Arup Roy Choudhury, Chairman and Managing Director, NTPC; Mr. Philippe Joubert, President, Alstom Power, Mr. H. D. Khunteta, CMD, Rural Electrification Corporation Ltd., Mr. P Uma Shankar, Secretary, Power Ministry India, Mr. A.B. L. Srivastava Chairman and Managing Director, NHPC India.

The discussion centered around overcoming the problems of power generation in the country, the concrete steps that needs to be taken and the measures that can be adopted to help India realize its goal of achieving self-reliance in power generation. The discussion threw light on the vital aspects of power industry and presented a clear picture of current situation and various ways to achieve stability and long term sustainability.

Speaking on the Planning Commission revising further downwards of targets, Ms. Sudha Pillai, Member-Secretary of the Planning Commission said, "We need to grow at a certain speed, at a certain level in order to avail power for industry, agriculture and domestic consumption. We have to gear up to overcome problems and meet our goals. I am not enchanted by the thought of downward division of target but believe all of us can work harder and better in order to meet our objectives."

Speaking on the prime problem in achieving the targets, Mr. P. Uma Shankar, Secretary, Power Ministry India said, "Somehow as a country we find it difficult to execute things in time. Project management and project execution are not our strengths. Getting things done in time is not something that we really hold close to our heart. If there is time line it is merely indicative and nobody really follows them."

Speaking on the challenges faced in meeting business objectives, Mr. Arup Roy Choudhury, Chairman and Managing Director, NTPC said, "As a nation we do not consider time to be an important factor on delivery. We have too many people who would like to interfere in the project development stage without having national consensus as to what is left to be done. We are proud to be a democratic country. We are proud of the freedom that people have. We are proud of the courts that we have, but then we pray to them for some kind of understanding. Moreover I too believe project management is one of the major challenges."

Speaking on problems faced by organization in power market, Mr. A.B.L. Srivastava Chairman and Managing Director, NHPC India said, "Due to the NGO's and other organizations creating negative publicity about the harmful consequences to the environment, getting public opinion in the favor of hydro sector is difficult. Although all legitimate concerns are being taken care of during the process, the major issue is that water is a state's object and different states have different policies and that makes life hard for us. In addition to this we have to fight the nature and none of us have control over it."

Adding further on the private sector pumping investment in hydro space, Mr. A.B.L. Srivastava said, "Private sector has just begun to invest in hydro space. They are many projects but only a few of them have taken off. It will be pre-mature to assess the amount of investment at this moment of time but definitely they would be contributing in a certain way."

Commenting on the manufacturing capability of Alstom in the Indian context, Mr. Philippe Joubert, President, Alstom Power said, "We largely invest in the manufacturing sector keeping in mind the deliverables and the goals. But delay in the projects is of a concern. If we are to multiply our production by five we have to change the process of decision making and insulate the policy from the people hindering the decision process. If all of this is implemented there will be no problem of manufacturing and delivering products on time."

Speaking on the financial crunch, Mr. H. D. Khunteta, CMD, Rural Electrification Corporation Ltd. said, "As far as financing element is concerned there is no shortage of finance. There is an issue about fuel supply, arrangement of water and financial health of some of the SEBs."

On the opportunities in the Indian market, Mr. Philippe Joubert, President, Alstom Power said, "The government is focused on improving infrastructure in the country and all the stakeholders need to come together to make this sustainable. All sources of energy need to be harnessed for sustaining the ever-increasing demand for power. The need of the hour is to adopt latest technologies that can serve to long-term demands. We are making significant investments in India to cater to the growing demand for power in the country and share the vision of the government of 'Power for All'."

Speaking on the occasion, Mr. Anil Uniyal, CEO, CNBC-TV18 and CNBC AWAAZ said, "Indian power generation utilities are faced with a threat to profitability, given the volatile nature of power tariffs and challenges of fuel availability. Considering that India is facing a serious power challenges, we are trying to explore whether the power generation sector has investor prospects, or not. This is with an aim to transform the industry into a sustainable power generator for the country."

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