India needs to go toward market pricing for power: GE chief

New Delhi, Sep 21 (IANS) American infrastructure giant General Electric (GE) on Monday said the level of state subsidy of the country’s power sector has to go for the company to play a meaningful role in it.

“GE is big in electricity. However, there has to be less subsidisation of power in India. Moving towards market prices, will allow more reinvestment by companies in the power sector,” company chairman Jeff Immelt, who met Prime Minister Narendra Modi on Monday, told reporters.

“The government has the laudable targhet of providing 24×7 power to all. Distribution entities, however, are having trouble paying for electricity, which hampers reinvestment in power,” he said.

The GE chief said that a “market-mechanism” is required to reach the target of power for all.

“Selling electricity below cost won’t allow for the reinvestment in power generation. That’s happening in India,” he said.

“If tariffs don’t change, you won’t get reinvestment in the sector,” Immelt stressed.

In this connection, Finance Minister Arun Jaitley said in Hong Kong on Sunday that some states were not charging adequate tariff for electricity as a result of which the health of power distribution companies (discoms) is being affected. There was surplus power last year because many discoms are unable to afford purchasing it, he said.

Speaking about financially distressed state electricity boards, state-run generator NTPC chairman A.K.Jha told reporters here on Monday that the situation could not be normalised without market pricing.

He said the generator’s plant load actor (PLF), which is the ratio between the actual energy generated and its capacity, could only be improved if demand increased.

Leave a Reply

Please enter your comment!

The opinions, views, and thoughts expressed by the readers and those providing comments are theirs alone and do not reflect the opinions of www.mangalorean.com or any employee thereof. www.mangalorean.com is not responsible for the accuracy of any of the information supplied by the readers. Responsibility for the content of comments belongs to the commenter alone.  

We request the readers to refrain from posting defamatory, inflammatory comments and not indulge in personal attacks. However, it is obligatory on the part of www.mangalorean.com to provide the IP address and other details of senders of such comments to the concerned authorities upon their request.

Hence we request all our readers to help us to delete comments that do not follow these guidelines by informing us at  info@mangalorean.com. Lets work together to keep the comments clean and worthful, thereby make a difference in the community.

Please enter your name here