Power in any form is one of the most critical factors for the Indian economy. The economic growth and the welfare of the country depend on it. The Indian government has invested a lot in this sector by providing state-of-the-art infrastructure to fuel the growth of power sector companies in India.
Diversity In The Power Sector
At the same time, the power generation companies in India are extremely diversified. There are more than 2 to 3 sources of power generation in this country. Power sector companies in India use various natural resources, like coal, bio-fuel, natural gas, oil, hydro (water) and nuclear power to generate the power required for the country.
There are other non-conventional methods used by power generation companies in India like wind power, solar power and bio-waste. The demand for electricity is forever rising in India. It is expected to go up by 40% in the coming decade. In order to meet with future demand, the Indian government is planning to privatize several power sector companies in India and also encouraging new companies to foray into the sector.
Changes In The Power Sector
The Indian power sector is going through a major transformation and the entire outlook of the power generation companies in India has changed. The main focus for the government of India is to create additional capacity so that it can meet the industrial and residential consumption needs.
The Important Government Initiatives
The power sector in India is mainly governed by central and state government. A few of them are controlled by the private sector. Today, the power sector is being given utmost importance because it propels the industrial growth of the country. The government has taken several friendly initiatives to propel this growth.
- The Electricity Act of 2003 added several meter regulations for consumption units and also came up with the smart meter.
- The UDAY, or Ujwal Discoms Assurance Yojana, an initiative of the Government of India, encourages power sector companies in India to reduce aggregator losses.
- In August 2018, the Ministry of Power standardized the pricing of power units and introduced imported solar cells for environment safety.
- The government has also taken initiatives to introduce many agriculture-friendly power options to aid farmers.
Rural India was lacking power supply for several decades until the government of India came up with power supply options to promote agriculture and empower the farmers by providing subsidies. While the government has electrified several villages, many more still have to be covered, particularly in geographical regions where the terrain is unfriendly.
Individual state governments in India provide electricity at subsidized rates and also offer it free for some business sectors. This scheme includes agricultural consumption and backward classes. Even progressive industries get several sops in the power consumption sector.
All these initiatives put together have contributed to the annual GDP growth of India by 8%. Today, the country can depend on the reliable energy source, alternative environment-friendly options like solar power, high and consistent power supply, and optimum costs. India is rated as one of the top 25 countries for power-friendly options.