The power sector has had more than its fair share of complications during FY19. Weak industrial production (IIP) data, high distribution companies (DISCOM) receivables, Central Electricity Regulatory Commission (CERC) ruling on Adani Power, Supreme Court ruling on February 12 circular and slow pace of stressed asset resolution have affected the power sector badly. Ajay Kumar Bhalla, power secretary, who has been steering many of the power resolution programmes, discussed, decoded and analysed all these.
On Tata Power, Bhalla said, “I think the consent from other states in case of Tata Power is awaited. The matter is under discussion. So maybe by another month or two months’ time, all these things should be through for Tata Power also. In the case of Tata Power, there are three other states involved. So I understand that all the states are working on it and once they convey their approvals then the revised power purchase agreement (PPA) will be filed by the states.”
In terms of power demand, he said, “If I look at the FY19 figures, the growth was 5.1 percent. Overall power generation growth was 5.1 percent. We expect more than 6 percent to be maintained in the coming year because with additional connectivity in the rural areas and generally the gross domestic product (GDP) growth at 7.3 percent, we should be growing at about 6 percent in the power sector.”