How will the government’s infrastructure push and various structural policy reforms expected to trigger power demand in the country?
As per the Ministry of Power’s five-year vision, the power sector was poised to grow at average rate of 6 per cent in FY21. However, due to the pandemic-induced economic standstill, power demand from high-paying industrial and commercial segments significantly reduced worsening of the already stretched distribution companies’ (discoms) financials. Revival of economic activity coupled with the government’s 24 x 7 power push for all should provide impetus to electricity demand growth. The draftElectricity Amendment Bill and the National TariffPolicy are expected to usher in discipline and operational efficiencies in distribution of power. We expect a significant push for privatisation of distribution by regulators to improve efficiencies and protect the sector from discom-induced stress with some of the states like Uttar Pradesh and Odisha already starting the privatisation process.
How has the pandemic impacted Tata Power’s operations?
Similar to many other businesses, Tata Power faced operational, project execution and demand issues during the initial phase of the lockdown. However, as a utility and essential service provider, we have to brave such pandemics alongside doctors, law enforcement and other essential services. All our 11 thermal and hydro generation plants across six states, our distribution and transmission businesses at five locations and renewable projects at 70 sites are operating at optimum levels. We continue to serve all our customers at home and at business establishments thanks to our strong officers and contract workforce who continue to work in all these plants while ensuring appropriate containment and segregation to enable continuity of business.
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August 03 - 16, 2020