Indian Power Sector Growth Plan

To enhance power supply in cost effective ways is one of the top priorities for the country. During the quarter April-June 2009, the energy and peaking shortages in the country were 9.8% and 12.3% respectively.

The Compound Annual Growth Rate (CAGR) of power demand for the last five years has been 6.80% as against power supply CAGR of 5.88%. The CAGR of your Company’s power generation has been higher at 6.79%. Strong appetite for electricity consumption in the country translates into robust growth outlook for power players like NTPC.

Gross electricity requirement by the end of the 11 th Plan projected by the Working Group on Power is 1,038 billion kWh and peaking demand estimation is 1,51,000 MW.

The Integrated Energy Policy, 2006 of the Government of India estimates installed capacity requirement of 778 GW and energy requirement of 3,880 billion kWh by 2031-32 if the country’s GDP grows at the rate of 8%. At 9% GDP growth rate, the capacity requirement will be 960 GW and energy requirement will be 4,806 billion kWh by 2031-32.

Key players to invest into if you aim to be long term investor in the Indian Power Sector.
1. NTPC
2. Reliance Power
3. GVK Power and Infrastructure
4. Petronet LNG (installing gas based power plants with synergy from its LNG operations)
5. IOC (has planned Nuclear power plants)
6. JSW Steel (coming up with power plants)

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