Topic: - Power Industry in India

INTRODUCTION
The prosperity of a country depends directly upon the development of agriculture and industry. Agricultural production, however, requires irrigation, power, credit, transport facilities, etc. Industrial production requires not only machinery and equipment but also skilled manpower, management, energy, banking and insurance facilities, marketing facilities, transport services which include railways, roads and shipping, communication facilities, etc. All these facilities and services which help in industrial and agricultural production constitute collectively the infrastructure of an economy. The development and expansion of these facilities are an essential pre-condition for increasing agricultural and industrial production in a country. Infrastructural facilities-often referred to as economic and social overheads-consist of: 1. Irrigation, including flood control and command area development. 2. Energy: coal, electricity, oil and non-conventional sources 3. Transport: railways, roads, shipping and civil aviation 4. Communication: posts and telegraphs, telephones, telecommunications 5. Banking, finance and insurance 6. Science and technology 7. Social overheads: health and hygiene and education` India is the seventh largest and second most populous country in the world. A new spirit of economic freedom is now stirring in the country, bringing sweeping changes in its wake. A series of ambitious economic reforms aimed at deregulating the country and stimulating foreign investment has moved India firmly into the front ranks of the rapidly growing Asia Pacific region and unleashed the latent strengths of a complex and rapidly changing nation. India's process of economic reform is firmly rooted in a political consensus that spans her diverse political parties. India's democracy is a known and stable factor, which has taken deep roots over nearly half a century. Importantly, India has no fundamental conflict between its political and economic systems. Its political institutions have fostered an open society with strong collective and individual rights and an environment supportive of free economic enterprise. India's time tested institutions offer foreign investors a transparent environment that guarantees the security of their long-term investments. India's dynamic and highly competitive private sector has long been the backbone of its economic activity. It accounts for over 75% of its Gross Domestic Product and offers considerable scope for joint ventures and collaborations. Today, India is one of the most exciting emerging markets in the world, Skilled managerial and technical manpower that match the best available in the world.

Literature Review:
What is a Power industry?
According to Wikipedia: The electrical power industry provides the production and delivery of electrical power (electrical energy), often known as power, or electricity, in sufficient quantities to areas that need electricity through a grid. Many households and businesses need access to electricity, especially in developed nations, the demand being scarcer in developing nations. Demand for electricity is derived from the requirement for electricity in order to operate domestic appliances, office equipment, industrial machinery and provide sufficient energy for both domestic and commercial lighting, heating, cooking and industrial processes. Because of this aspect of the industry, it is viewed as a public utility as infrastructure.

Power Industry before Independence:

According to The Times of India The British controlled the Indian power industry firmly before Independence. The then legal and policy framework was conducive to private ownership, with not much regulation with regard to operational safety.

Power Industry Post Independence:

Immediately after Independence, the country was faced with capacity restraint. India adopted a socialist structure for economic growth and all the major industries were controlled by public sector enterprises. By 1970's India had nationalized most of its energy assets, due to its commitment to social goals. By the late 1980's the Indian economy felt the strain of the socialist agenda followed since independence. Faced with a serious deterioration in public finance and balance of payment crisis, the Union government as part of its policy of economic liberalization allowed greater investment by private sector in the power industry.

SOURCES OF POWER
1. HYDEL POWER 2. THERMAL POWER 3. NULEAR POWER

Government policies for electricity:-

1. Electricity Bill 2001 2. Energy Conservation Act 2001 3. Power for ALL by 2012 4. Rural electrification

Research Methodology:
This dissertation seeks to research and examine the importance of the development of power in relation to the growth and development of the Indian economy. The problems relating to the development of power in India have also been examined. This research has been undertaken with the usage of secondary data. 1. Quantitative and Qualitative Data Gathering 2. Data Analysis

Executive Summary:
The Power sector is a very coming up sector in the economy. The need for power will always increase as the development of the country increases. The electrical power industry is commonly split up into four processes. These are electricity generation such as a power station, electric power transmission, electricity distribution and electricity retailing. In many countries, electric power companies own the whole infrastructure from generating stations to transmission and distribution infrastructure. For this reason, electric power is viewed as a natural monopoly. The industry is generally heavily regulated, often with price controls and is frequently government-owned and operated. The nature and state of market reform of the electricity market often determines whether electric companies are able to be involved in just some of these processes without having to own the entire infrastructure, or citizens choose which components of infrastructure to patronize. In countries where electricity provision is deregulated, end-users of electricity may opt for more costly electricity. The critical role played by the power industry in the economic progress of a country has to be emphasized. A self sufficient power industry is vital for a nation to achieve economic stability. The electricity sector in India is predominantly controlled by Government of India's public sector undertakings (PSUs). Major PSUs involved in the generation of electricity include National Thermal Power Corporation (NTPC), National Hydroelectric Power Corporation (NHPC) and Nuclear Power Corporation of India (NPCI). Besides PSUs, several state-level corporations, such as Maharashtra State Electricity Board (MSEB), are also involved in the generation and intra-state distribution of electricity. The Power Grid Corporation of India is responsible for the inter-state transmission of electricity and the development of national grid. India is world's 6th largest energy consumer, accounting for 3.4% of global energy consumption. Due to India's economic rise, the demand for energy has grown at an average of 3.6% per annum over the past 30 years. In March 2009, the installed power generation capacity of India stood at 147,000 MW while the per capita power consumption stood at 612 kWh. The country's annual power production increased from about 190 billion kWh in 1986 to more than 680 billion kWh in 2006. The Indian government has set an ambitious target to add approximately 78,000 MW of installed

generation capacity by 2012. The total demand for electricity in India is expected to cross 950,000 MW by 2030.