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What India Really Require - More Generation Capacity or Transmission System Strengthening

News:

Power plants commissioned since April 2014, aggregating to 13,900 mw, face financial uncertainties due to the lack of sufficient off-take agreements and transmission constraints, according to Fitch Group's company India Ratings & Research. 

Source: ET

SNP Insights:

Transmission system in India slowly becoming a big hiccup in Indian power sector growth. Lack of transmission corridor, congestion in system cause questioning cloud for investors. Adding in generation capacity ignoring transmission strengthening no longer is the beneficial equation for sector. In future it might cause financial uncertainty and lack of interest from investor in generation segment. It may also lead to more tightning of funding mechanism in which small players are not able to play and generation business became a deep pocket player’s game only.

 
Source: SNP Infra Research