The Indian Power generation industry had witnessed an incredible growth journey in the past few years

The Indian Power generation industry had witnessed an incredible growth journey in the past few years, led by the entry of private sector players. However, with the 11th Plan adding ~54.5GW, the domestic coal industry has not kept pace with growth in capacity addition, which led to acute coal shortage. To counter this, most of the private players went ahead and bought mines in Indonesia and Australia, but upward revision of imported coal prices and non-pass through clause in competitively bid imported coal based projects rendered these projects unviable. Additionally, the state distribution companies are in dire state with huge losses due to nonrevision of tariffs, high AT&C losses and non payment of subsidy by states.

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