Coal supply will be in strain for sometime says industry

Among several challenges currently being faced by the power sector, fuel supply especially coal will be in strain for sometime, say industry experts. Speaking at the fifth edition of Confederation of Indian Industry (CII) Energy Conclave 2011 in Ahmedabad, Sudhir Trehan, vice chairman, Crompton Greaves Ltd. said that the power sector will have to be prepared to face a continual shortage of fuel for the near future.

"The Indian power industry will be dependent on four things, namely fuel supply, last mile connectivity by distributors, other infrastructure like ultra high tension network and regulatory support. Of these, fuel, especially coal supply will be in strain for sometime. Also, none of the new generation capacity will benefit until the last-mile connectivity is achieved by distributors," said Trehan, who is also the chairman for the CII Energy Conclave 2011.

Similarly, speaking about shortage in fuel supply, Vikas Kaushal, partner and vice president at AT Kearney Ltd. said that the game changes for power sector in the coming times will be reforms in the fuel sector, rise of renewable energy, consumer enforcement through vibrant retail market and increase in smart grids. "Considering the shortage in other major fuels, renewable energy will become the mainstay for Indian power sector sooner than expected. Moreover, retail competition will increase since by 2015 onwards, 15-20 GW will be added per annum in the country," Kaushal added.

Focusing on the theme of 'Roadmap for a new ear of power market in India', the three-day conclave-cum-exhibition will showcase the latest new and emerging technologies for the power sector, with a major highlight on renewable energy.

Pradeep Bhargav, deputy chairman - CII Western region said that other industries as consumers should be reasonable when it comes to power tariff hikes. "Industry as a consumer should not blame the sector alone for tariff hike since they are also determined based on global trends. Also, industry should be equally a party in improving AT&C losses," he added.On behalf of the Gujarat government, minister of state for industries Saurabh Patel stated that state governments will have to hold political will if they wish to reduce T&D losses in their regions.

"State governments will have to match industrial consumption with rise in each agricultural consumption of power. Otherwise, with already huge T&D losses, imbalance in agriculture-industry consumption will result in huge number of non-payers from the agriculture sector. If they don't do so, it shows that states want agriculture sector to use power but not want utilities to earn profits," said Patel. Meanwhile, the three-day exhibition will showcase emerging technology from verticals like power, coal, gas, renewable energy, non-renewable energy, clean and green energy, power transmission and distribution equipment and financing options.