Torrent Power management says that International prices are rising; and this will put pressure on margins of utility companies. Increase in fuel prices and other costs may see increase in tariffs by regulators. Management expects no delay in their Capex plans, and has plans of Rs 11600 crore during XI Plan. Acccording to Govt XII power plan company sees an capacity addition of 6500 MW and Capex of around Rs 31000 crore.
Management further said that currently there is shortage in picking demand as well as in the energy requirement unless and until further capacity is added or unless there is a substantial improvement in the performance of the existing companies that shortage will persist even for the coming months. Normally after October-November particularly on the western region there is a sort of slack season and the demand falls and that is a time when there may not be shortage as much but otherwise without further addition the shortage will continue to be there.
Currently the prices which are prevailing particularly for the fuel and with the increase in the international price all around even in the coal and the petroleum based products the pressure will be there definitely on the margins of the utility companies. The utility companies are regulated and for any increase in the prices they have to go to the regulator and normally the process is only once a year. In this context certainly there will be pressures on the margins of the utility companies however with the improvement in the productivity, improvement in the efficiency this will have to be met as we go along.
The capex for 12 th plan has also been drawn, a tentative plan which is under the ministry and it is about adding 6,500 mega watt and 21.2 million tonnes of lignite. Roughly about Rs 31,000 cr will be spent. For this adequate financing plan has been drawn taking into consideration generation of funds and also the borrowing this will be adequately met.
Management further said that currently there is shortage in picking demand as well as in the energy requirement unless and until further capacity is added or unless there is a substantial improvement in the performance of the existing companies that shortage will persist even for the coming months. Normally after October-November particularly on the western region there is a sort of slack season and the demand falls and that is a time when there may not be shortage as much but otherwise without further addition the shortage will continue to be there.
Currently the prices which are prevailing particularly for the fuel and with the increase in the international price all around even in the coal and the petroleum based products the pressure will be there definitely on the margins of the utility companies. The utility companies are regulated and for any increase in the prices they have to go to the regulator and normally the process is only once a year. In this context certainly there will be pressures on the margins of the utility companies however with the improvement in the productivity, improvement in the efficiency this will have to be met as we go along.
The capex for 12 th plan has also been drawn, a tentative plan which is under the ministry and it is about adding 6,500 mega watt and 21.2 million tonnes of lignite. Roughly about Rs 31,000 cr will be spent. For this adequate financing plan has been drawn taking into consideration generation of funds and also the borrowing this will be adequately met.
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