Indian Private Power Companies jockey for the Biggest Utility Position

Indian Privately Owned Power Utilities are furiously expanding their capacities as India looks to treble its Power Generation Capacity in the next decade.The major power companies like Adani Power and Reliance Power are giving Tata Power a tough fight for the position of the biggest private Indian Utility.While these companies cannot hope to overtake state owned giant NTPC in this decade,they may do so in the next one.Note some of these companies are expected to grow almost 20 times in the next 10 years.Here  are the main contenders

1. Tata Power is looking to double its capacity to around 6 GW from the 3 GW at present by March 2012
2. Reliance Power is also looking to add around 5 GW from its around 1 GW present.Reliance Power with its 3 UMPP Coal Plants has the biggest expansion planned near term
3. Lanco Power with around 2 GW has around 7 GW under construction
4. Adani Power seems to be executing best with around 6.6 GW to come under steam in the next year with 1 GW under operations.Adani’s Mundra Power Plant seems well ahead in the construction timeline.

Note most of the power plants being built in India are coal ones with the power providers aggressively buying up coal mines in Indonesia,Australia and South Africa to increase fuel security.However in case of any global disruptions,India remains very vulnerable.However India’s policymakers are sleeping on this issue.It makes more sense to concentrate on those sources whose fuel security is high such as solar and wind power.Coal also faces the prospect of high carbon taxation as global warming becomes acute.Environmental issues related to power plants has already resulted in some being halted as local citizens agitate against the thermal plant’s negative effects on livelihoods and health.

Race quickens for top spot in PVT power

The race among the newer crop of private sector power producers to become the largest, displacing Tata Power, is gaining momentum. Among those aiming to catch up in the next two years are companies promoted by leading corporate houses such as Adani Power, Reliance Power, GMR Energy and Lanco Infratech.

Other corporate houses such as GVK, Sterlite Energy and Indiabulls are also developing power projects, but are unlikely to pose a threat to the front runners in the area of installed capacity in the near future.