India has been one of the fastest growing economies in emerging markets. Indian economy has posted more than 9% growth for three years consecutively and has seen a decade of more than 7% growth. One of the key factors behind any growing country is the energy requirement and supply in that country. As energy plays a very important role in industrial production and common man’s life, it has become extremely important to boost the growth in energy segment for the growth of the country.

With the growing demand in energy requirement, the annual per capita energy consumption has grown significantly. To fulfill the energy demand, the government has worked out a plan for generation capacity addition in the country. The report deals with the growth in the energy generation in India along with the growth in the equipments being used in the power sector.

With every capacity addition plan, there is an increased requirement of power equipments. The report analyzes the major challenges in front of the country related to the supply and requirement of power equipments.

Inspite of government initiatives in increasing energy supply in the country, there are many issues that are creating barriers in capacity addition plan. The report discusses such issues and challenges which are major reasons for the energy deficiency in India. Inspite of significant efforts, the government has not been able to meet energy requirement of the country leading to many opportunities for private players to enter in the market.

The report highlights the opportunities present in Indian Power Sector for the global players as this sector holds great potential in the coming years reflected by the growth in the Indian economy.

By combining SPSS Inc.’s data integration and analysis capabilities with our relevant findings, we have predicted the future growth of the industry. We employed various significant variables that have an impact on this industry and created regression models with SPSS Base to determine the future direction of the industry. Before deploying the regression model, the relationship between several independent or predictor variables and the dependent variable was analyzed using standard SPSS output, including charts, tables and tests.

1. Power Scenario in India

Overall Power Supply Position
Regional Power Supply Position
Power Consumption Growth

2. Segment Analysis

2.1 Generation

Overall Installed Capacity
Installed Capacity by Region

2.2 Transmission and Distribution

Growth in Transmission Lines
Growth of Substations
Transmission Losses

2.3 Electrical Power Equipment Manufacturing

Growth of Power Equipment Manufacturing
Growth of Product Segments

3. Regulatory Reforms

3.1. Formation of Independent Regulatory Bodies
3.2. Electricity Act, 2003
3.3. National Electricity Policy
3.4. FDI Investment Allowed in Power Sector

4. Market Opportunities

4.1. Increase in Installed Generation Capacity to Meet Demand
4.2. Shortage in Electric Power Equipment Supply

5. Key Issues

5.1. Inability to Meet Capacity Addition Target
5.2. Lowest Per Capita Energy Consumption Worldwide
5.3. Shortage of Coal - A Major Hindrance in Capacity Generation

6. Key Players

6.1 Generation

6.1.1 National Thermal Power Corporation

Overview
Business Strategies
Capacity Expansion through Joint Ventures
Diversifying in Fuel Mix
Diversification in Related Business Areas

6.1.2 National Hydro Power Corporation

Overview
Business Strategies
Globalization Initiative
Focus on Research and Development
Continuously Engaged in New Initiatives and Assignments

6.2. Electrical Power Equipment Manufacturers

6.2.1 Bharat Heavy Electrical Limited (BHEL)

Overview
Business Strategies
Global Expansion
Initiatives in New Products and Areas

6.2.2 General Electric Co. (GE)

Overview
Business Strategies
Building Strong Business
Sustaining Competitive Advantage

6.3 Balance of Plant

6.3.1 Thermax Ltd

Overview
Business Strategies
Grabbing the Opportunities in Market
Enhancing Product portfolio

6.3.2 McNally Bharat Engineering Co.

Overview
Business Strategies
Maintaining Sustained Growth Rate
Expanding the Presence in Market

7. Market Outlook

7.1 Market Forecast

7.2 Forecast Methodology

7.2.1 Dependent and Independent Variables
7.2.2 Correlation Analysis
7.2.3 Regression Analysis

List of Tables

Overall Power Supply Position by Peak Points (2004-09)
Overall Power Supply Position by Energy Statistics (2004-09)
Regional Power Supply Position by Peak Point (2009)
Regional Power Supply Position by Energy Statistics (2009)
Installed Capacity by Private/Public Sector & Segment (Aug 2009)
Regional Installed Capacity by Segment (Aug 2009)
Installed Capacity at End of 5-Year Plans by Segment
Growth in Transmission Lines by 5-Year Plans
Growth in Sub Stations by 5-Year Plans
Growth in Transmission Sector (Aug 2009)
Transmission Loses by Type (2003-08)
Requirement of Major BOPs for 11th Plan Thermal Projects (2009)
Capacity Addition During 11th Plan: Private/Public Sector by Segment
Capacity Addition During 11th Plan: Regionwise by Segment
Projects Commissioned During 11th Plan by Segment
Projects under Construction during 11th Plan by Segment
Equipment Requirement during 11th & 12th Plans by Type of Projects
Requirement of Switchyard Electrical Equipments (Thermal) - 11th & 12th Plans
Hydro Project Equipment Requirement - 11th & 12th Plans
NTPC Group of Companies Engaged in 11th Plan Power Projects
NTPC - Joint Venture Companies
Dependent & Independent Variables (2003–09)
Correlation Matrix
Model Summary – Coefficient of Determination
Regression Coefficients Output

List of Charts

Annual per Capita Power Consumption (2003-32E)
Overall Power Supply Position by Deficit/Surplus (2002-09)
Growth in Generating Installed Capacity by 5-Year Plans
% of Generation Target Achieved (2004-09)
Growth in Transmission sector by 5-Year Plans
Decline in Transmission Losses (2003-08)
Growth Rate of Power Equipment Manufacturing (2005-09)
Power Equipment - Annual Growth Index (2004-08)
Growth in Boiler & Turbine Manufacturing (2004-09)
Domestic Market Value of Transformers (2004-08)
Growth in Switchgear Production (2003-08)
Power Plant Structure
Percentage of Projects Commissioned during 11th Plan by Sector
Percentage of Target Achieved in Capacity Addition (7th – 11th Plan)
Global Comparison- Per Capita Power Consumption
Power Sector Coal Consumption & Import (2004-09)
Coal Demand & Supply Position by CCL (2008-12E)
Per Capita Energy Consumption Forecast (2009-11E)
Growth in Installed Capacity: NTPC Vs Total Installed Capacity (2005-09)
Growth in Generation: NTPC Vs Total Generation (2005-09)
NTPC - Growth in Sales (2005-09)
NHPC - Growth in Generation of Energy (2005-09)
NHPC - Growth in Sales of Energy (2005-09)
BHEL - Total Order Received (2005-09)
BHEL - Growth in Revenues (2005-09)
General Electric - Growth in Revenues (2004-08)
Thermax - Order Inflow Breakup: FY09
Thermax - Growth in Sales (2005-09)
McNally Bharat Engg. - Order Inflow Breakup: FY09
McNally Bharat Engg. - Growth in Sales (2005-09)