How can India's Power Sector help in the development of the country?


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The Indian power sector is one of the most diversified sectors in the world. There are three major pillars of power sector namely Generation, Transmission, and Distribution. The demand for electricity in the country has been growing at a rapid rate and is expected to grow further in the years to come. In order to meet the increasing requirement of electricity, massive addition to the current installed generating capacity in the country is required. The transmission segment has a major role in achieving this mission as an efficient transmission capacity and network will prove essential to transfer power from generating stations to distribution networks.

India’s GDP has grown by 6.3% in 2011-12 and 5% in 2012-13 with the rise in industrial and commercial activity in the country. Disposable income has risen by 19.1% and population has increased by 15 million in this period. With the growth in economy, energy demand has also seen a ~7% y-o-y growth. As per the International Energy Agency (IEA) publication on World Energy Statistics 2013, India ranks 5th in Electricity production and 110th in the per-capita consumption of electricity. These stats were stated by Mr Piyush Goyal, Minister of state for Power, Coal & New and Renewable Energy (Independent Charge).

India also has fifth-largest installed capacity in the world, accounting for 3.4% of global energy consumption, with Maharashtra as the leading electricity generator among Indian states. 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.

By 2022, the installed power capacity in India is expected to reach 350 gigawatts (GW) from 243 GW in 2014, on the back of increasing industrialisation and economic development. The total market size of electrical machinery in India is anticipated to reach US$ 100 billion in 2022 from US$ 25 billion in 2012.

Prime Minister Narendra latest flagship programme Make In India is going to help grow production with the help of ambitious projects and increasing investments across the value chain. The aim is to achieve large capacity additions of up to 174.9 GW by 2022. Make in India will thus play a critical cog in the wheel of developing India. In fact, the future of the nation depends on Power Transmission as they impact a large population at the base of the pyramid.