New Delhi: The Union Minister for Power and New & Renewable Energy, Shri R. K. Singh, declared that India’s power sector is the prime destination for investment, emphasizing the rapid growth of the Indian economy and the power sector’s promising trajectory in the coming years. Speaking at the inaugural session of the ET Now Global Business Summit in New Delhi, Minister Singh highlighted the unprecedented surge in electricity generation and consumption, underscoring the sector’s pivotal role in supporting India’s economic expansion.
“India’s power sector is unmatched in size, and its growth is crucial for our overall economic development. The demand for power will continue to rise, presenting a rewarding investment opportunity, and our challenge is to ensure a consistent supply,” stated Shri Singh.
The Minister acknowledged the transformation within the power sector, attributing the current robust investment climate to a shift in the private sector’s mindset. He explained, “Previously, the private sector was reluctant to invest, but now, the market is more remunerative, attracting steady investments into the sector.”
Highlighting the government’s efforts to enhance transparency, Shri Singh mentioned the implementation of an automatic payment mechanism for power suppliers. He noted the reduction of financial stress within the sector, with outstanding dues of power generators significantly decreasing.
“We have turned around the sector by bringing down losses and closing the ACS-ARR gap. Legacy dues are diminishing rapidly, and the average daily availability of power in rural and urban areas has seen a substantial increase,” said the Minister.
Shri Singh emphasized the importance of depoliticizing electricity usage and ensuring accountability in subsidies. “Somebody has to pay for power, and we have established rules to enforce this. Subsidies are conditional, and if not paid in advance, they will not be passed on. We have made everything accountable; if you do not pay for power, you do not get power,” he asserted.
Addressing the performance of power sector Public Sector Undertakings (PSUs), Minister Singh highlighted their remarkable growth in share prices and expressed confidence in their continued success, given the sector’s evolving nature and increasing demand.
Responding to inquiries about the sector’s turnaround, the Minister credited talented staff, transparent decision-making processes, and the institution of effective dispute resolution mechanisms. He emphasized the government’s commitment to adding significant power capacity, with ambitious plans for thermal, renewable, and hydroelectric projects.
Minister Singh concluded by noting India’s leadership in renewable energy, highlighting the country’s rapid transition from traditional sources to advanced technologies like offshore wind and green hydrogen storage. He also commended India’s power transmission system, which, he claimed, surpasses global standards in terms of rules, procedures, and speed.
With a positive outlook for the future, Minister R. K. Singh underlined India’s commitment to sustainable growth and its determination to meet and exceed international commitments in the power sector by 2030.
