POWER

The power sector is high on India’s priority as it offers tremendous potential for investing companies based on the sheer size of the market and the returns available on investment capital. In the past few years, there has been considerable growth in power plants based on renewable sources of energy.

The Government of India has an ambitious mission of ‘POWER FOR ALL BY 2012’. This mission would require that our installed generation capacity should be at least 2,00,000 MW by 2012. In order to ensure that the generated power reaches the entire country, an expansion of the regional transmission network and inter regional capacity to transmit power would be essential.

We at ASC Investment support the mission of Government of India and accumulating funds for investment in Power Sector of the country for development and also to provide highest returns to the investors ensuring safety of funds.

Overview of the Power Sector in India

Electricity consumption in India has more than doubled in the last decade, outpacing economic growth. The primary energy supply in the country is coal-dominant, with the power sector accounting for about 40 percent of primary energy and 70 percent of coal consumption. It is also the single largest consumer of capital, drawing over one-sixth of all Indian investments over the past decade. (CMIE, 2000) The Indian power sector is characterized by large demand supply gap.

The energy policy of India is largely defined by the country’s burgeoning energy deficit and increased focus on developing alternative sources of energy, particularly nuclear, solar and wind energy.

About 70% of India’s energy generation capacity is from fossil fuels, with coal accounting for 40% of India’s total energy consumption followed by crude oil and natural gas at 24% and 6% respectively. India is largely dependent on fossil fuel imports to meet its energy demands — by 2030, India’s dependence on energy imports is expected to exceed 53% of the country’s total energy consumption. India’s coal imports for electricity generation increased by 18% in 2010.

Due to rapid economic expansion, India has one of the world’s fastest growing energy markets and is expected to be the second-largest contributor to the increase in global energy demand by 2035, accounting for 18% of the rise in global energy consumption. Given India’s growing energy demands and limited domestic fossil fuel reserves, the country has ambitious plans to expand its renewable and nuclear power industries. India has the world’s fifth largest wind power market and plans to add about 20GW of solar power capacity by 2022. India also envisages to increase the contribution of nuclear power to overall electricity generation capacity from 4.2% to 9% within 25 years. The country has five nuclear reactors under construction (third highest in the world) and plans to construct 18 additional nuclear reactors (second highest in the world) by 2025.

In order to address some of the issues in this segment, reforms have been undertaken through unbundling the State Electricity Boards into separate Generation, Transmission and Distribution units and privatization of power distribution has been initiated either through the outright privatization or the franchisee route; results of these initiatives have been somewhat mixed.

Generation

In order to provide availability of over 1000 units of per capita electricity by year 2012, it has been estimated that need-based capacity addition of more than 100,000 MW would be required. This has resulted in massive addition plans being proposed in the sub-sectors of Generation Transmission and Distribution.

Transmission

Transmission of electricity is defined as bulk transfer of power over a long distance at a high voltage, generally of 132 KV and above. In India bulk transmission has increased from 3708 ckm in 1950 to more than 265,000 ckm today. The entire country has been divided into five regions for transmission systems, namely Northern Region, North Eastern Region, Eastern Region, Southern Region and Western Region. The interconnected transmission system within each region is called the regional grid.

The current installed transmission capacity is only 13 percent of the total installed generation capacity. With focus on increasing generation capacity over the next 8-10 years, the corresponding investments in the transmission sector is also expected to augment. The Ministry of Power Plans to establish an integrated National Power Grid in the country by 2012 with close to 200,000 MW generation capacities and 37,700 MW of inter-regional power transfer capacity. Considering that the current inter-regional power transfer capacity of 20,750 MW4, this is indeed an ambitious objective for the country.

The Government of India has an ambitious mission of ‘POWER FOR ALL BY 2012’. This mission would require that our installed generation capacity should be at least 2, 00,000 MW by 2012 from the present level of 1, 14,000 MW. To be able to reach this power to the entire country, an expansion of the regional transmission network and inter regional capacity to transmit power would be essential. The latter is required because resources are unevenly distributed in the country and power needs to be carried great distances to areas where load centers exist.

Distribution

With the initiative of the Government of India and of the States, the Accelerated Power Development & Reform Programme (APDRP) was launched in 2001, for the strengthening of Sub Transmission and Distribution network and reduction in AT&C losses. Since incentive financing is proposed to be integrated with the existing investment programme to achieve commercial viability of SEBs / Utilities and link it to the reform process, the original APDP was rechristened to Accelerated Power Development & Reforms Programme (APDRP) during 2002-03 for 10th five year plan. The Restructured APDRP (R-APDRP) was launched by MoP, Gol in July 2008 as a central sector scheme for XI Plan.

Foreign Direct Investment Policy

Automatic approval (RBI route) for 100% foreign equity is permitted in generation, transmission, and distribution and trading in power sector without any upper ceiling on the quantum of investment. Subject to the provisions of the Electricity Act 2003

The Indian power sector has the fifth largest electricity generation capacity in the world and the world’s third largest transmission and distribution network.

The power sector in the country is poised for record capacity addition of 15,000 MW during the present financial year, said Mr. Sushil Kumar Shinde, Union Minister of Power.

During the period April 2000 to April 2009, Power Sector has been able to attract FDI amounting to US $ 3.23 billion.

ASC Investments

We at ASC Investment Consultants assure investors of providing 12% secured return and minimum 50-60% super profits which can be achieved by investing in prospering sectors in India such as Power, Real Estate, Infrastructure etc.

We are tapping best opportunities available for investment in order to provide highest returns to our investors. Our investors range from big corporate houses to NRI’s/PIO to foreign nationals.

Our legal support team at ASC Solicitors and Advocates provides best guidance available in the industry for investment and related issues such as, tax planning, FDI Policy, repatriation, RBI approvals besides handling legal matters.

Our panel assures highest returns and ensuring safety of funds-

ü Funds collected shall be invested in India in various sectors providing high returns assuring a secured return of 12% and super profits being minimum at 50-60%.

ü Establishment of Investors Committee ensuring security of funds.

ü Safe deposit of monies in Escrow Account and under the supervision of Investors Committee.

ü Under the supervision of Mr. Alok Sinha, thus ensuring safety of funds.

ü Proper tax planning and legal support to be provided by ASC Solicitors and Advocates.