The Union Minister for Power and New & Renewable Energy, Shri R. K. Singh, has urged the Indian manufacturing industry to compete globally and create products for both India and the world. Speaking at The Times Group WorldWide Media Festival of Manufacturing 2024, Singh stressed the importance of the industry looking outside to compete in external markets and exporting.
He emphasized that no country can be fully self-sufficient, and every country needs to import something for which it needs to sell to that country. The Minister also emphasized the importance of quality, finishing, and product improvement in the industry.
He emphasized that the quality of products must be high enough to compete globally and reasonable prices. Singh also expressed India’s openness to foreign investment in the power sector, stating that the world is looking at China plus one. He also mentioned a projected investment of Rs. 20 lakh crores in the power sector over the next five to seven years.
The Indian government has been investing significantly in the power sector, with a focus on expanding its capacity to meet growing demand. The government has invested around Rs. 20 lakh crores in the power sector over the last nine years, with another Rs. 17 lakh crores expected in the next five to seven years. In the last decade, the government has added 190 GW of power generation capacity, nearly doubling it, and has added 200,000 circuit kilometers to transmission lines. The country’s transmission system is the largest integrated transmission system in the world, capable of transferring 116 GW from one corner of the country to another.
The Power Minister stated that the expansion is ongoing and needs to double its size by 2030. The country is adding 85 GW of thermal capacity, 14 GW hydro under construction, and another 14-15 GW of hydro capacity under clearances. The viability of discoms was an issue that previously stood in the way of adding power capacity. However, all power sector companies have doubled or tripled their share prices, and their market caps have gone up 3-4 times, indicating how viable they have become.
The nation is committed to adding thermal capacity to ensure energy security and energy transition, as India is a world leader in energy transition. The government has also implemented policy instruments such as tariff barriers on modules and cells to protect industry and improve quality barriers for externally manufactured equipment. Today, module manufacturing capacity has increased from 20 GW to 50 GW, and cell manufacturing capacity from 2 GW to around 12-13 GW.
The power sector started early on, giving a playing field by protecting the industry. In 2018, the government introduced a circular requiring strenuous tests for imported equipment and started the phased manufacturing program for thermal equipment. The pace of renewable energy capacity addition in India is the highest in the world, with about 186 GW of non-fossil capacity, with 7 GW being nuclear and the remaining being solar, wind, and hydro.
The government’s orientation has changed to that of solving problems, with measures taken to encourage more fiscal prudence on the part of states. For example, subsidies given by states must be paid for, and genco dues are now up to date. Legacy dues have come down from Rs. 1.35 lakh crores to Rs. 44,000 crores.
The 2nd edition of the Festival of Manufacturing celebrates ’10 years of Make in India’, celebrating progress made in the last decade.
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