Upgrading and expanding power grids is one of the urgent tasks facing Prime Minister Modi and his new government. © Reuters
MUMBAI -- Spurred to action by Prime Minister Narendra Modi, India's top state-run power transmission company has laid out concrete plans for expanding and upgrading power grids.
Power Grid Corp. of India has decided to invest roughly 51.5 billion rupees ($933 million) to expand the power transmission network in the central state of Chhattisgarh over a period of slightly less than four years. It also plans to invest about 4 billion rupees in the power transmission facility of a thermal power plant that another state-run utility operates in the state.
PGCIL also plans to upgrade power grids in the western state of Gujarat, with investment of around 58 billion rupees and a time frame of three to four years being considered.
Since Modi's election victory, anticipation has been growing inside and outside India that he will deliver long-awaited economic reform to the South Asian country. Expectations for efforts to bolster the nation's electricity infrastructure are particularly high, given Modi's track record.
In Gujarat, where he served as its chief minister from 2001 until his win in the national election, Modi spearheaded power utility reform, eliminating blackouts and giving the state one of the best power supply systems in India.
Already on it
The new government, which came into power in May, has already approved nine power transmission projects, including the one in Chhattisgarh, as well as others in the northern states of Haryana and Uttar Pradesh and the central state of Madhya Pradesh.
These projects, whose total projected investment comes to 125 billion rupees, are expected to boost power transmission across state borders. Under the previous government, most of these projects had been sitting idle for months as they waited for approval.
Improving power grids and lowering transmission losses are essential since some estimates suggest only around 60% of electricity generated at India's power plants actually reaches businesses and homes. Rectifying this is a top priority of the new government.
The power supply in India has been running around 10% below demand, resulting in major blackouts in Delhi and other cities in 2012. The new government is expected to get push for improvements in power generation infrastructure and guarantee a more reliable supply.
Power shortages have been one of the major weak spots for the Indian economy. If power infrastructure projects progress smoothly under the new government, the country will be better able to attract foreign manufacturers and other businesses.
Under Modi, India finally sees progress on power shortages- Nikkei Asian Review
