Beruflich Dokumente
Kultur Dokumente
th XII
Plan
Agenda
Sector Profile
Magnitude of Investment Funding Sources and Issues
Percent
10 5
Energy Def icit Peak Def icit
0
1998 -99 2000 -01 2002 -03 2004 -05 2006 -07 2008 -09
Percent
5.00
0.00 199900 200001 200102 200203 200304 200405 200506 200607 200708* 200809*
For India to grow @9% p.a. its power sector must also grow at
7.2% p.a (XIIth Plan projects electricity use elasticity wrt GDP at 0.8) But over the last 5 years, Gross Power generation has grown by only 5.89% pa NEP objective : Power for all by 2012
Magnitude of Investment
(Rs crore)
Plan Generation Transmi ssion 1,40,000 2,40,000 Distributi R&M Total on etc 3,09,077 18,104 10,59,515 4,00,060 11,35,142
XIth Plan 5,91,734 XIIth 4,95,082 Plan
XIth Plan availability assessed at Rs 6,37,873 crore Leaving a gap of Rs 4,21,642 crore of which Debt gap 269,067
Equity gap 152,575
FDI
1600 1400 1200 1000 800 600 400 200 0 2006-07
2007-08
2008-09
Issues in Brief
Bank Credit to Power sector Subject to sectoral and group exposure limits The growth of credit has slowed down from 68% in 2007-8 34% in 2008-09 Term Lending Institutions constrained by prudential norms FDI -Shy because of insufficient return on equity Raising resources through Public offers- captive to political stances Poor health of distribution segment
Let us examine these issues in some detail
bank loan completions banks are delaying disbursal of sanctioned loans Government borrowing crowding out private sector borrowers
Duty and Tax regime not conducive to innovative infrastructure
Commercial Borrowing
Cautious about lending to projects coming through the MOU
route.
Insistence on PPAs creates difficulties for IPPs and MPPs Banks and NBFCs comfortable only with PPAs with ultimate
increased only marginally from 16% to 18% over 2006-9. By contrast FDI to Telecommunications is more than 47% Paradox explained by:
low regulatory returns on equity lack of politico-administrative support on containment of
escalation Appropriate fiscal incentives not available to channelise savings Long term funds available with PFs, Pension and Insurance Funds are not being tapped RBI guidelines restrict use of ECB proceeds for rupee expenditure
for funds
bilateral markets Long term price hedging instruments do not exist in the power markets necessary as more merchant capacities come on stream Disinvestment proceeds not being available for investment in the sector
Green Shoots
Equity markets have witnessed surging demand for new
Thank you