1 lakh mw projects likely in 10 years

The enactment of the Electricity Act 2003 last year will lead to the addition of more than one lakh mega watt (mw) power projects in 10 years.

Also, with the government's focus on rural electrification, 1.75 lakh small scale power projects will be set up in the next seven years, said Ravindar Nath Khanna, chairman, Elecrama-2004.

Khanna is also the chairman and managing director of Controls and Switchgear Group. Elecrama-2004 is an exhibition of electrical, industrial electronics, and allied products.

The sixth addition of the exhibition will be held at Pragati Maidan in New Delhi from February 3 to February 7.

According to Khanna, by January end, four power projects, totalling a capacity of 1,097 mw, will reach financial closure, three being in Andhra Pradesh and one being in Tamil Nadu.

India is on the way to be 'fully electrified' as after the National Highways, power is the next sector being focussed by the government.

The power reform in the country is ready for takeoff after the passing of the Electricity Act.

Over the next six months, about 18 generation projects totalling a capacity of more than 7,500 mw and investment of Rs 30 crore are also slated for financial closure.

From power generation to distribution, electricity can not reach without the usage of power and electrical products and the growth in the power sector will have a direct impact on electrical sector, he said.

In India power consumption is just 350 kw hours as compared with 650 kw hours in China and 9,000 kw hours in Europe. Power consumption in India is expected to spurt as electricity has become a necessity than a luxury.

"With the Electricity Act, lot of private players will come into the scenario pumping in a lot of money to set up generation units, storage, and transmission units," said Khanna.

For every 1,000 mw of additional electricity, Rs 2,000 crore of electrical goods is required.

If the entire chain is taken into account including generation, storage, transmission and usage, then the potential for the industry per 1000 mw is four times and Rs 8,000 crore per 100 mw.

The current turn over of the Indian electrical industry is Rs 45,000 crore and the industry is growing at the rate of 10 per cent , which is expected to double in this year.

Exports of the electrical and allied products constituted Rs 4,500 crore last year and is expected to double every year.

Indian electrical and allied products are exported to the US and European markets, he said.

India is coming up as a competitive force in the international market as the technical capabilities and the technology platform is the same as the European standards and cheap labour makes India an ideal manufacturing hub, he said.

Companies such as Seimens, ABB, GE, Emerson Technologies, EPOCS and CG Brook Hansen have already set up manufacturing bases in India. These companies along with other Indian companies are exporting bulk quantity of electrical and allied products outside the country, Khanna said.

Elecrama-2004 is organised by the Indian Electricals and Electronics Manufacturers Association and is supported by the ministry of power, commerce and industry.

"Elecrama 2004 will be a platform to showcase India's potential and prowess to the world, and it will facilitate tie-ups and joint ventures for the future growth of the industry," said Khanna.