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Power Transmission And Distribution Sees $75-Billion Investment Shortfall: Report

  • Reflecting sectoral woes, India's power transmission and distribution (T&D) segment is facing an staggering investment shortfall of $75 billion (over Rs 3.68 lakh crore), says a report.Strategic risk management firm Orkash Services has said that for every dollar invested in the power generation in the country, only half a dollar is put in T&D.There are nearly 75 major power projects coming up and around around 35 of them are facing delays, it said.
  • "A cumulative figure to ascertain the amount of investments made into the power generation space comes to roughly about $150 billion, since the time reforms in the sector started," Orkash said."However, in India every dollar invested in the power generation has corresponded to only half a dollar invested in T&D," it said.On that basis, the country's T&D segment is grappling with "$75-billion investments gap".Apart from acute fuel shortages, high Aggregate Technical and Commercial (AT&C) losses - estimated to be around 30 per cent of total power generation - are a major issue facing the power sector.
  • The country's infrastructure sector is projected to require about $1 trillion investments in the 12th Five-Year Plan Period (2012-17)."The result of already low investments combined with huge distance between areas of production and areas of consumption have been a situation, where required investments in T&D to make the sector viable and profitable have gone up to 1:1.3/1.4 (for every dollar invested in generation, 1.3 will have to be put into transmission activities)," Orkash said.

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