Ebook127 pages2 hours
Beyond Crisis: The Financial Performance of India's Power Sector
Rating: 0 out of 5 stars
()
About this ebook
In September 2012, the Government of India approved a financial rescue scheme to revive the power generation sector. This bailout amounted to about Rs 1.9 trillion and came in response to banks and financial institutions with large nonperforming loans to the power sector. This is the second bailout of the sector in a decade. The first was in 2002 when the government had to convert the outstanding arrears of state electricity boards to central public sector undertakings. The 2002 bailout came to Rs 400 billion in state government bonds to restore the sector to financial solvency. The recent crisis and consequent bailout is more complicated than the 2002 bailout. Power sector developments in the past two decades have brought new players into a traditionally government-dominated sector, and they have also been implicated in the crisis.
India has adopted transformative policy changes since the last bailout. A landmark Electricity Act was passed in 2003, superseding all previous legislation. The strategic intent of the act was to promote competition by opening all possible avenues for the procurement and sale of electric power. Subsidiary policies and enabling legislation have advanced this process. Competitive markets have evolved and attracted new investments, largely from the private sector. The institutional structure of the traditionally public sector-dominated industry has also been transformed. Aside from the entry of new private sector participants, primarily in generation, the state electricity boards (SEBs) were unbundled into generation, transmission, distribution, and, in a few cases, trading segments. State electricity regulatory commissions (SERCs) were also established in all the states.
Over the next two decades, India faces immense challenges if it is to sustain the 8 to 10 percent growth rate required to end poverty and achieve human development goals. According to the Planning Commission, India needs to triple or quadruple its primary energy supply and increase its installed electricity capacity by at least five or six times its 2004 levels to meet demand in 2032. To accomplish these ambitious goals, India will need a commercially viable power sector.
This report presents a diagnostic of the financial and operational performance of segments in the power sector value chain between adoption of the Electricity Act, 2003, and 2011, including the factors that contributed to the recent crisis. The report focuses on efficiency and productivity, whether performance has improved over time, and which states have emerged as performance leaders. Analysis of this kind is not new or unique, but this report aims to integrate historical performance, the current situation, and future projections of the impact of worsening sector finances, and the actions that need to be taken to check the downturn.
India has adopted transformative policy changes since the last bailout. A landmark Electricity Act was passed in 2003, superseding all previous legislation. The strategic intent of the act was to promote competition by opening all possible avenues for the procurement and sale of electric power. Subsidiary policies and enabling legislation have advanced this process. Competitive markets have evolved and attracted new investments, largely from the private sector. The institutional structure of the traditionally public sector-dominated industry has also been transformed. Aside from the entry of new private sector participants, primarily in generation, the state electricity boards (SEBs) were unbundled into generation, transmission, distribution, and, in a few cases, trading segments. State electricity regulatory commissions (SERCs) were also established in all the states.
Over the next two decades, India faces immense challenges if it is to sustain the 8 to 10 percent growth rate required to end poverty and achieve human development goals. According to the Planning Commission, India needs to triple or quadruple its primary energy supply and increase its installed electricity capacity by at least five or six times its 2004 levels to meet demand in 2032. To accomplish these ambitious goals, India will need a commercially viable power sector.
This report presents a diagnostic of the financial and operational performance of segments in the power sector value chain between adoption of the Electricity Act, 2003, and 2011, including the factors that contributed to the recent crisis. The report focuses on efficiency and productivity, whether performance has improved over time, and which states have emerged as performance leaders. Analysis of this kind is not new or unique, but this report aims to integrate historical performance, the current situation, and future projections of the impact of worsening sector finances, and the actions that need to be taken to check the downturn.
Related to Beyond Crisis
Related ebooks
Corporate Debt Restructuring in Emerging Markets: A Practical Post-Pandemic Guide Rating: 0 out of 5 stars0 ratingsEfficiency and Competition in Chinese Banking Rating: 0 out of 5 stars0 ratingsFoundations of Energy Risk Management: An Overview of the Energy Sector and Its Physical and Financial Markets Rating: 0 out of 5 stars0 ratingsInvesting in the Renewable Power Market: How to Profit from Energy Transformation Rating: 0 out of 5 stars0 ratingsWorld Development Indicators 2014 Rating: 0 out of 5 stars0 ratingsEconomics for Democracy in the 21st Century: A Critical Review of Definition and Scope Rating: 0 out of 5 stars0 ratingsFinancial Performance Measures and Value Creation: the State of the Art Rating: 0 out of 5 stars0 ratingsModern Portfolio Management: Active Long/Short 130/30 Equity Strategies Rating: 0 out of 5 stars0 ratingsInfrastructure as an Asset Class: Investment Strategy, Sustainability, Project Finance and PPP Rating: 0 out of 5 stars0 ratingsIndian Demographic Trends: 2030 and Beyond Rating: 0 out of 5 stars0 ratingsIntrinsic value Complete Self-Assessment Guide Rating: 0 out of 5 stars0 ratingsRethinking Money and Capital: New Economics for Qe, Stimulus, Negative Interest, and Cryptocurrencies Rating: 0 out of 5 stars0 ratingsCredit Models and the Crisis: A Journey into CDOs, Copulas, Correlations and Dynamic Models Rating: 0 out of 5 stars0 ratingsThe Complete Guide to Capital Markets for Quantitative Professionals Rating: 4 out of 5 stars4/5Process and Asset Valuation A Complete Guide - 2019 Edition Rating: 0 out of 5 stars0 ratingsCredit Derivatives Pricing Models: Models, Pricing and Implementation Rating: 2 out of 5 stars2/5Exotic Option Pricing and Advanced Lévy Models Rating: 0 out of 5 stars0 ratingsPromoting Green Local Currency Bonds for Infrastructure Development in ASEAN+3 Rating: 0 out of 5 stars0 ratings1+1=7: How Smart Leaders Make 7 Investments to Maximize Value Rating: 0 out of 5 stars0 ratingsEco-ethical Investment: Investing your Money Intelligently Rating: 0 out of 5 stars0 ratingsCutting the Gordian Knot: India's Quest for Prosperity Rating: 0 out of 5 stars0 ratingsHandbook of Investors' Behavior during Financial Crises Rating: 0 out of 5 stars0 ratingsFiduciary Management: Blueprint for Pension Fund Excellence Rating: 0 out of 5 stars0 ratingsNew Frontiers of Sovereign Investment Rating: 0 out of 5 stars0 ratingsStandards of Value: Theory and Applications Rating: 0 out of 5 stars0 ratingsRisk Management in Commodity Markets: From Shipping to Agriculturals and Energy Rating: 0 out of 5 stars0 ratingsMacroeconomics: Private and Public Choice Rating: 3 out of 5 stars3/5The Economics of Climate Change: Adaptations Past and Present Rating: 0 out of 5 stars0 ratingsOptimizing the Aging, Retirement, and Pensions Dilemma Rating: 0 out of 5 stars0 ratings
Industries For You
YouTube Secrets: The Ultimate Guide to Growing Your Following and Making Money as a Video I Rating: 5 out of 5 stars5/5Sleight of Mouth: The Magic of Conversational Belief Change Rating: 5 out of 5 stars5/5Fast Food Nation: The Dark Side of the All-American Meal Rating: 0 out of 5 stars0 ratingsYouTube 101: The Ultimate Guide to Start a Successful YouTube channel Rating: 5 out of 5 stars5/5INSPIRED: How to Create Tech Products Customers Love Rating: 5 out of 5 stars5/5Music Law: How to Run Your Band's Business Rating: 0 out of 5 stars0 ratingsBottle of Lies: The Inside Story of the Generic Drug Boom Rating: 4 out of 5 stars4/5Shopify For Dummies Rating: 0 out of 5 stars0 ratingsDisney's Land: Walt Disney and the Invention of the Amusement Park That Changed the World Rating: 4 out of 5 stars4/5Energy: A Beginner's Guide Rating: 4 out of 5 stars4/5Powerhouse: The Untold Story of Hollywood's Creative Artists Agency Rating: 4 out of 5 stars4/5The Market Gardener: A Successful Grower's Handbook for Small-Scale Organic Farming Rating: 4 out of 5 stars4/5Artpreneur: The Step-by-Step Guide to Making a Sustainable Living From Your Creativity Rating: 2 out of 5 stars2/5The Best Story Wins: How to Leverage Hollywood Storytelling in Business & Beyond Rating: 5 out of 5 stars5/5How We Do Harm: A Doctor Breaks Ranks About Being Sick in America Rating: 4 out of 5 stars4/5Bad Pharma: How Drug Companies Mislead Doctors and Harm Patients Rating: 4 out of 5 stars4/5The Best American Food Writing 2018 Rating: 4 out of 5 stars4/5The House of Gucci: A True Story of Murder, Madness, Glamour, and Greed Rating: 4 out of 5 stars4/5Pharma: Greed, Lies, and the Poisoning of America Rating: 5 out of 5 stars5/5Excellence Wins: A No-Nonsense Guide to Becoming the Best in a World of Compromise Rating: 5 out of 5 stars5/5Weird Things Customers Say in Bookstores Rating: 5 out of 5 stars5/5Uncanny Valley: A Memoir Rating: 4 out of 5 stars4/5All the Beauty in the World: The Metropolitan Museum of Art and Me Rating: 4 out of 5 stars4/5A Study of the Federal Reserve and its Secrets Rating: 4 out of 5 stars4/5
Reviews for Beyond Crisis
Rating: 0 out of 5 stars
0 ratings
0 ratings0 reviews
Book preview
Beyond Crisis - Mani Khurana
Enjoying the preview?
Page 1 of 1