Power Sector

Power Sector is our core area of undertaking investment. We are abreast of various governmental projects for offtake.

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.

Opportunities of FDI in the Power Sector in India



Opportunities of Foreign Direct Investment (FDI) in the Power Sector in India exist in -

  • Hydro Projects
  • Captive Power
  • Ultra Mega Power Projects
  • Nuclear Power
  • National Grid Program
  • Rural Electrification
  • Trading
  • Renewables

FDI Inflows to Power

100% FDI is allowed in the power sector under the automatic route in India with the exception of Atomic Energy. Important aspects of FDI in the power sector of India are -

  • 100 percent Foreign Direct Investment is allowed under automatic route in almost all the power sectors in India except the Atomic Energy
  • Power projects involving generation and distribution tasks are allowed in all types and sizes
  • As per the Electricity Act 2003, trading in power is activated
  • A duration of 30 years will given as a renewable license period
  • Thermal power plants will get a return of 16 percent on equity and will get 68.5 percent PLF
  • The import of equipments will be entitled to 20 percent of import duty
  • Power generating projects will have a five year tax holiday with five more years which will have a deduction of 30 percent taxable profits.

 

MOST PREFFERED DESTINATION INDIAN STATE FOR POWER : CHHATTISGARH

Chhattisgarh, a 21st century State, came into being on November 1, 2000. Chhattisgarh is a state in Central India. It borders Madhya Pradesh on the northwest, Maharashtra on the west, Andhra Pradesh on the south, Orissa on the east, Jharkhand on the northeast and Uttar Pradesh on the north. Chhattisgarh is truly a land of opportunities. With all major minerals including diamonds in abundance, there are mega industries in steel, aluminum and cement. The state also contributes substantially to India's human resources. Several hundred students from the state qualify for admissions in prestigious national academic institutions every year.

The state has low power generation cost due to pit head power generation. This is attracting many power-intensive industries. Its central location helps easy power transmission and evacuation to any part of country. There has been no labour unrest in either Bhilai or Korba, the power capital, for several decades. Twelve percent of India's forests are in Chhattisgarh, and 44 percents of the state's land is under forests. Identified as one of the richest bio-diversity habitats, the Green State of Chhattisgarh has the densest forests in India, rich wildlife and above all over 200 non-timber forest products, including medicinal, aromatic and dye plants, with tremendous potential for value addition.

Advantage Chhattisgarh

  • One of the youngest and the fastest growing state of India.
  • Richest state in mineral resources like Iron, limestone, coal, bauxite and tin.
  • With unique bio diversity. Richest state in medicinal, aromatic and dye plants.
  • Rank third in 2009 in attracting investment proposals (All India).
  • Developing as "Power Hub" of the country.
  • Highest freight loading zone in India, contributing one sixth of total revenue of Indian Railways.
  • Conducive industrial relations environment, abundant power and water for industrial needs.
  • Land available at reasonable rates.
  • Large tribal population and rich cultural heritage.
  • New Capital 'Naya Raipur' being developed with state of the art infrastructure.
  • Excellent road network.
  • All district headquarters, tehsils and development blocks are connected with good all weather roads.
  • Good health and education facilities –

·         Apollo hospital, Bilaspur,

·         Escorts, Raipur

·         J.N. Medical Institute, Bhilai (SAIL)

·         44 engineering colleges and numerous polytechnics and ITI

                         

                        To facilitate smooth ride for inter-state and internal traffic, about 3,106 kms. road length has been specially taken up for up gradation.

Railways

  • Recognizing the potential for mining and metal industry related traffic in the state, the Indian railways have established a new Railway Zone named 'South East Central Railway' with its headquarters at Bilaspur in Chhattisgarh.
  • Chhattisgarh is connected to Kolkata and the national capital New Delhi by super fast Rajdhani Express.
  • The state has the highest freight loading in the country and one-sixth of Indian Railway's revenue comes from Chhattisgarh. The length of rail network in the state is 1,108 kms.
  • Raipur lies on the main route between Mumbai and Kolkata and daily direct trains connecting Delhi, Kolkata, Chennai and Mumbai are available.
  • Direct trains to many cities e.g. Ahmadabad, Allahabad, Varanasi, Bangalore, Cochin, Pune and Hyderabad are also available.

Air Connectivity

Raipur is linked by regular flights with New Delhi, Mumbai, Kolkata, Bhubneshwar, Nagpur, Bhopal, Indore, Ahmedabad& Hyderabad.

Mineral resources

Chhattisgarh is a virgin territory that awaits major players to explore and unlock the potential of its abundant minerals. the state is the richest in mineral wealth. Along with two neighboring states of Orrissa and Jharkhand, it accounts for almost the entire coal deposits of India.

The state has the right geological set up to host a number of economic mineral deposits of the Achaean and Proterozoic periods. The area has observed multiple major thermo-tectonic events, covering principal metallogenic and mineralogenic episodes. Such a geological environment is indicative of untapped potential for search of high value metal and mineral deposits of excellence. The State's Mineral Policy has created a positive business environment to attract private investment in the State.

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