In the last three years, we have added projects worth more than Rs 80,000 crores: IS Jha, Power Grid Corp
In an interview with ET Now, IS Jha, CMD, Power Grid Corp said that, “Power Grid compared to our rivals is at the strong footing because we have the experience, our presence are there everywhere and our balances are quite strong.” Edited excerpts:
ET Now: How do you see yourself growing along with the rise of the Indian power sector like I pointed out the focus is really moving from power deficit to power surplus, how can India make the transition?
IS Jha: Actually if you see the last three-four years, it is a paradigm shift in the Indian power sector, now from deficit to surplus, fossil fuel to renewable energy, the government generating company to private generating to private generating company. These type of situations are there. Under this situation transmission has to play a major role, that is why the strong national grid was required. If you see in last three years, we have added projects worth more than Rs 80,000 crores. With this the company’s balance sheet has also grown. Our turnover has gone up to Rs 26,500 or something like that in last financial year and our profit has crossed the Rs 7500 crores that is why there is overall growth of the company.
ET Now: From deficit to surplus in the Indian power sector, how have you contributed to this?
IS Jha: First of all for this we can give the credit to the top leadership in the government as well as lot of reforms in the regulations. These are things they have played major role. As far as transmission is concerned, we know that our generation resources like coal, water, even renewable energy is concentrated in few fields like coal is concentrated in the central India, hydro is concentrated in J&K and Himachal Pradesh. Even renewable, because of the ability of land they are concentrated in the Tamil Nadu, Gujarat, Kutch area and Rajasthan. And that is why the generation is too much in these areas. There is surplus but surplus has to be felt in all over the country. This can be done only through the transmission that is why transmission has made a major role to connect all the resources to all the load centre to carry the power with reliability, quality and affordable rate. That is why surplus is being felt all over the country despite the fact that resources are concentrated in few areas only.
ET Now: So going forward, how do you see the power industry in the country panning out and what really is going to be the focus on?
IS Jha: Due to the energy security in the long term, Government of India is giving lot of focus on the renewable energy and in last five years we have added nearly 35,000 megawatt with the CAGR of 18%. Today the installed capacity of renewable energy is nearly 58,000 megawatt. Government of India’s target is to take it up to 1,75,000 megawatt by 2022. At that time with all the three generation, capacity wise, penetration will be near about 40%. Even in terms of energy it will be near to 18% to 20%. But the only thing is with this renewed energy. Lot of challenges are also coming up because of the basic character of the renewable energy. The challenge is to integrate into the grid to sustain it. As you know that we have developed the green energy corridor which consisted of necessary transmission system to be added in advance. It consisted of the SVC and statcom which is providing the dynamic support, which will work as a shock absorber doing the variation. And third is we are setting up REMC(renewable energy management centres)at eleven places. All these things are going on and in that way the power market is going to other renewable energy.
ET Now: How are you positioned to win new transmission orders in renewable energy space?
IS Jha: In renewables we have developed green corridor. Most of the projects have been given to us. Now new renewable projects are going under TBCB and the basic requirement of the renewable energy is to complete it within the timeframe of one and one-and-a-half year. We have seen that Power Grid compared to our rivals is at the strong footing because we have the experience, our presence are there everywhere and our balances are quite strong. Even today if you see we have participated around 25 numbers of projects since 2011 when we have started participation.
ET Now: How is the performance of Champa-Kurukshetra panning out?
IS Jha: As of now the total capacity of Champa-Kurukshetra is 6000 megawatt. We have commissioned pool one of 1500 megawatt. Since then it is turning out 1500 megawatt with the availability of more than 99%, that is why performance is quite good. Within the short term, it has become so vital element of the grid. You can imagine, just one month back it had tripped for some small time, the price of the grid has gone up by Rs 5, that is why it is performing well. It has become the vital element of our grid.