As investment in power projects dries up, Thermax eyes 'captive' biz boost

Lack of investment in power plants in the country is going to compel many new investors to go for captive power plants

Thermax Ltd., an Indian maker of electricity-generation equipment, expects demand for captive power plants, typically small units to meet the internal needs of a business, to rise in the next 4-5 years as investments in large power projects slow down and state utilities struggle to give reliable supplies.

Industries such as food processing, textiles, pharmaceuticals and automobiles are expanding capacities and will look at generating their own power rather than depending on the unreliable grid, Thermax’s Managing Director M.S. Unnikrishnan said in an interview.

The expected revival of captive power in India points to a chronic problem in the country’s power industry