Tuesday, October 19, 2010

Indian Power Sector - Diaries 1

The Indian Power Industry is in an interesting phase of evolution. After the liberalization of the generation space in the Electricity Act 2003, there is a flurry of activity seen especially from Independent Power Producers (IPPs). It is projected that the share of capacity addition from IPPs would exceed that of the public sector (State, Central and Joint Sectors put together) in the next five years.

However, emerging players are confronted by several issues including shortage of long term funds, unproven operations track record, resource and supply logistics uncertainty, transmission and distribution bottlenecks etc. Many new IPPs emerging in the generation space are largely unprepared to face both upstream and downstream shocks widely expected in the industry.  

To mitigate the aforementioned setbacks and develop a strong economic, logistical, operational and managerial foundation, it is important for IPPs to design and implement an effective enterprise information and planning system. 

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