"Doubt is not a pleasant condition but certainty is absurd" said Voltairethe famous French philosopher Today while the global markets seek some degree ofcertainty within a highly volatile environment India has emerged as a beacon of hopeespecially as the other BRICS nations start to slow down or stay in recession and the nextdecade could well be India's decade in the world
Over the last couple of years the energy sector in Ind ia has seen a transformationaltransition as a consequence of several policy level changes accompanied by a superbexecution of directives. These include amendments to the electricity act coal blockauction and allocation integrated power development scheme Deendayal
Upadhyaya Gram Jyoti Yojana unmatched ambition in renewable energy generation targetsthe Ujwal DISCOM Assurance Yojana (UDAY) and widespread transmission connectivity plans.
What any industry seeks is certainty and with the policy interventions that we havewitnessed both on the Power as well as domestic coal mining fronts there is good reasonto feel confident While the per-capita electricity consumption of India has now crossed1000 kWh it still remains well below average global enchmarks and therein rests theopportunity for Adani Power. Also with announcement of revised Tariff Policy and the UDAYscheme - by the government Adani Power feels confident to consider additional growthopportunities to fulfill our commitment to partner with Government in its vision toachieve 24 X 7 "power for all" by 2019.
The financial year 2015-16 has been a year of sustained power generation growth andhigh performance for Adani Power. We started our Power journey only 9 years ago in theyear 2007 and I am proud to say that this year Adani Power further consolidated itsposition as India's largest private sector thermal power producer with total generationcapacity of 10440 MW from its four world class thermal plants set up leveraging energyefficient super-critical technologies. In the last five years Adani Power has continuedto expand and has grown its capacity from 1980 MW to its present operating capacity of10440 MW thereby reflecting a compounded annual capacity growth of 40%. With the signingof the definitive agreement for acquisition of the 600 MW Korba West Power Company plantat Chhattisgarh our pan-India power generation capacity will increase to 11040 MW.
As a result of the expanded capacity and superior operational performance Adani Powerregistered a turnover of '25433 crores during the year which is a 33% increase ascompared to the previous financial year. The Group's Mundra Power plant generated 33.1billion units during the year making it the highest of any thermal power plant in thecountry. Adani Power's total generation stood at 69.4 billion units during the financialyear as against 54.7 billion units in FY 2014-15.
However Adani Power's debt and liquidity position in financial year 201516 remainedstressed due to the continuing non-resolution of compensatory tariff matter with the PowerDiscoms arising from the increased cost of fuel because of the promulgation of theIndonesian regulations and the short supply of domestic coal. APTEL in its order dated 7thApril 2016 has held that these issues constitute Force Majeure events under the PPAs andwe are optimistic for an early resolution to this matter.
While the power business continues its rapid growth our proudest moments come from thestories we hear about the lives we have the opportunity to influence. Adani Foundation'seducation programs have already touched the lives of over 150.000 young students itshealthcare programs touch the lives of over 200.000 people every year the sustainablelivelihood programs have made over 35.000 people and their entire families self-reliantand the Foundation has improved the lives of over 500.000 people across 177 villages byhelping provide better roads drinking water and other basic facilities. We are gratefulthat we have been given this opportunity.
The days ahead are exciting and I would like to thank our customers employeesshareholders bankers governments and the Board for making 20151 6 another strong year aswe lay the foundation for our continued growth.
Chairman - Adani Power