Tata Power Renewable Energy CEO calls PPPs "catalyst for reform" in power sector transformation

Sanjay Banga says PPPs are not just about privatisation; but about building mutually beneficial models that combine public objectives with private execution strength

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Notes PPPs' success depends on whether all stakeholders, including employees, customers and regulators, are considered in the design, Opines PPPs can be effective in other public utilities and service delivery Insists not to view PPPs solely as vehicles for privatisation as they serve public needs if designed properly, Asserts greatest strengths of India's PPP journey lies in its adaptive learning or ability to reform frameworks based on experience and evidence

TATA Power Renewable Energy Ltd. Managing Director and CEO Sanjay Banga yesterday underscored how well-designed PublicPrivate Partnership (PPP) models have transformed India's power sector and could offer valuable lessons for Sri Lanka as it finalises its own PPP framework.

Delivering the keynote at the PPP: Partnership and Prosperity for People' forum High Commission of India in collaboration with the Ceylon Chamber of Commerce (CCC) in Colombo, Banga drew on India's seven decades of experience in power generation, transmission and distribution, stressing that PPPs when built on accountability, clear regulation and stakeholder alignment; can deliver efficiency, financial sustainability and better service to citizens.

Tracing India's power sector journey from independence to the present day, he noted that India's initial post-1947 structure placed energy management in the hands of state electricity boards, which controlled generation, transmission, and distribution. However, inefficiencies, mounting losses and governance challenges soon highlighted the limitations of State-run monopolies.

"To overcome these gaps, the Government introduced the first central generation company, NTPC, to meet the energy deficit and later established the Power Grid Corporation of India to ensure a reliable transmission network," Banga explained. "These reforms opened the door for private investment and that's where the PPP model truly started to reshape India's energy landscape."