Overview
Power sector is one of the critical elements of any nations economic development and it will play an important role to make India a developed nation. Universal access to affordable power in a sustainable manner has been the guiding principle for the Power sector. Power sector will play a key role to address the challenges related to climate change and meet the various commitments made by India at the global forum, India is reducing its dependence on fossil based energy and shifting to cleaner and renewable energy sources.
Transmission towers and conductors play major role in power transfer. To meet the growing demand for power in urban, industrial and rural areas there is a need for transfer of huge quantum of power from generating stations. The growing concerns about environmental impact of transmission line construction and protest against siting of towers added with the requirement of reducing tower material, necessitates new tower designs needing reduced right of way and slimmer structures. Development of high temperature electrical conductors for transmission lines is essential for bulk power transfer. The challenges are to reduce the transmission losses, increase the power transmission on the existing lines and the development of more efficient conductors for new lines. The development of efficient power transmission system has a major impact in the future of transmission systems and is a priority.
With the increase in economic activity, the demand for power in India is also increasing. India has witnessed electricity demand increased at CAGR of around 4.1 % during the last decade and it is projected that electricity demand will grow at CAGR of 7.18 % (as per 20th EPS Report) for next five years.
In May 2023, The Central Electricity Authority has notified the National Electricity Plan which gives a very optimistic future for power transmission sector.
Government, in the past years had taken various initiatives to transform the country from power deficit to power surplus nation which includes increasing the share of renewable energy in the overall capacity mix, connecting the whole nation into one grid, strengthening the distribution system and achieving universal household electrification.
India has witnessed a phenomenal growth in the Power Sector in terms of electricity generation, capacity addition as well as development in Transmission and Distribution (T&D) systems over the last decade. This has been possible with the introduction of enabling policies and regulatory changes favourable for a competitive environment encouraging growth. Measures like participation of the private investment in the Power Sector, adoption of state-of-the-art technologies, thrust on improvement in the efficiency of the existing plants and setting-up of new plants with improved efficiency have acted as catalysts to the growth of the Sector. Concerted efforts have also rendered improvement in electricity connectivity within the country and also with the neighbouring countries for cross border transmission of electricity.
The Government of India has paid higher attention on supply of electricity at an affordable price, and to deliver it in an efficient and sustainable manner to the consumers without causing adverse impact on the environment.
Over the years the installed capacity of Power Plants (Utilities) has increased to 3,99,496 MW as on 31.03.2022 and has further increased to 4,10,339 MW as on 31.12.2022, from a meagre 1362 MW in 1947. The electricity generation increased from about 5.1 Billion units in 1950 to 1491.9 BU (including imports) in the year 2021-22. Regional grids have been integrated into a single national grid thereby providing free flow of power from one corner of the country to another through strong inter regional AC and HVDC links. As a result, the peak demand (MW) not met as well as energy (MU) not supplied have registered steady decline on all India basis. The peak power deficit during 2021-22 has been 1.2 % and Energy Deficit has been 0.4 % only. This marginal shortage seen is on account of reasons other than unavailability of Generation Capacity. India has made the massive strides towards renewable energy sources and exhibited a remarkable increase in RE sources installed capacity. The contribution of RE sources (including Large Hydro) to the installed capacity has increased from 5.8% in 2006–07 to 39 % in 2021-22 till 31.03.2022 and further increased to 41% as on 31.12.2022 and its energy contribution in the total generation has increased to 21.54 % in 2021-22 from 1.5 % in 2006-07.
Risks
Some of the risks that the management visualizes are as follows: l Land Acquisition l Spike in prices of raw materials like steel, zinc, etc. l Environment and Forest issues l Rehabilitation & Resettlement l Natural Calamities l Law & order problem & Local issues l Contractual problems l Geological uncertainties l Difficult Terrain & Poor Accessibility l Funds constraints with Contractor l Force Majeure Risk l Inter-state issues l Court / NGT / NCLT Cases.
Cautionary Statement
Statements in the "Management Discussion and Analysis" section may be forward looking and are stated as required by applicable laws and regulations. Actual results may vary materially from those expressed or implied by the forward- looking statements due to risks or uncertainties associated therewith depending upon economic conditions, government policies and other incidental factors. Readers are cautioned not to place undue reliance on these forward-looking statements.
For Jyoti Structures Limited | |
sd/- | |
Dr. Rajendra Prasad Singh | |
Chairperson & Independent Director | |
DIN:00004812 | |
Date:22nd June, 2023 | |
Place: Mumbai |
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www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Copyright © IIFL Securities Ltd. All rights Reserved.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes.