The government has reduced the total investment by seven state-run power firms, including NTPC and PowerGrid, by 21.87 per cent to Rs 44,332.81 crore for 2019-20, against the revised estimate of Rs 56,742.49 crore for the current fiscal.
The investment by these public sector undertakings (PSUs) was budgeted at Rs 54,270.11 crore for the current financial year, according to the Budget 2019-20 document.
According to the document, the highest cut of 47.34 per cent in the investment has been done for Power Grid Corporation to Rs 15,000 crore for 2019-20, compared with the Rs 28,487.53 revised estimates for this fiscal. The investment by the company was budgeted at Rs 25,000 crore for this fiscal in the previous Budget.
In the case of NTPC, the investment for 2019-20 has also been reduce to Rs 20,000 crore from Rs 22,300 crore for this fiscal. The investment for the current fiscal was not revised.
The investment by the state-run hydro power giant NHPC has been increased to Rs 3,806 crore for 2019-20 from the revised estimate of Rs 2,577.40 for this fiscal. The investment by the company for this fiscal was budgeted at 2,739.86 crore.
The investment by Damodar Valley Corporation has been pegged at Rs 1,835.26 crore for the next fiscal, higher than the revised estimate of Rs 1,514.38 crore for this fiscal. The investment was budgeted at 1,605.64 crore for this fiscal.
According to the Budget, North Eastern Electric Power Corporation will invest Rs 684 crore in the next fiscal, compared with the revised estimate of Rs 61 crore for this fiscal. The investments by the company was budgeted at Rs 389.24 crore for this fiscal.
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Satluj Jal Vidyut Nigam Ltd will invest Rs 1,550 crore in next fiscal, compared with Rs 935 crore budgeted for 2018-19. The investment of the company was not revised.
Tehri Hydro Development Corporation will invest Rs 1,457.55 crore in the next fiscal, compared with the revised estimate of Rs 867.18 crore for 2018-19. The investment of the company was budgeted at Rs 1,300.37 crore for this fiscal.
According to Budget 2019-20, the total expenditure of the power ministry has also been pegged higher at Rs 22,322.27 for the next fiscal, compared with the revised estimate of Rs 20,062.19 crore for this fiscal. It was budgeted at Rs 15,769.92 for 2018-19 in the previous Budget.
Finance Minister Piyush Goyal said in his Budget Speech: "Till the year 2014, about 2.5 crore families were forced to live the life of 18th century without electricity. Under the Saubhagya Yojna, we provided free electricity connection to almost every household. By March 2019, all willing families will get electricity connection."
He also said: "In mission mode, we have provided 143 crore LED bulbs with the participation of private sector. This has resulted into savings of approximately Rs 50,000 crore per year in electricity bills of poor and middle class families."
Sabyasachi Majumdar, senior vice-president and group head (corporate ratings), ICRA, said: "The higher budgetary allocations in 2019-20 on schemes such as DUGJY (Deendayal Upadhyaya Gram Jyoti Yojana) and IPDS (Integrated Power Development Scheme) are a positive for distribution utilities, as it would enable them to reduce distribution losses in their licence areas."
Majumdar said: "The continued thrust towards ensuring electricity access to all rural households under Saubhagya scheme is likely to improve energy demand in the country, which is a positive for generating companies/ IPPs.
"The budgetary allocation towards the renewable energy sector has remained similar in 2019-20 and thus provides continued policy support towards meeting funding requirements for the renewable energy segment, including that for building a green energy transmission corridor.
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