The Government needs to look at the power sector with a tremendous sense of priority, more so if it wants to meet its plans and growth targets, Mr Ratan Tata, Chairman, Tata Power, said.
Addressing shareholders at the 92{+n}{+d} AGM, Mr Tata outlined the potential of the sector while pointing to the impediments that hindered growth.
The challenges were land acquisition, environment clearances, non-availability of domestic coal and the cost of imported coal.
If the issues remain unaddressed, the industry may have to look at captive plants to meet their requirements, which would entail huge investments.
There was also a need to review the tariff structure, especially, those being built on imported coal, he pointed out.
Tata Power was looking for overseas opportunities to expand its portfolio, given the challenges faced on the domestic front, he said, without detailing the geographies the company intends to work in.
Speaking to reporters after the meeting, Mr Anil Sardana, Managing Director, said the Chief Executive Officer of the imported coal-based Mundra power plant, had written to the Government on the policy changes in Indonesia and the impact of the fuel cost on the project.
In the absence of a resolution to the issue, the company would look to use its expertise at Trombay in blending coal to fuel the plant, he said.
cost of coal
Mr Sardana said it should be understood that cost and availability of coal were an industry issue as domestic coal was in shortage and importing was expensive.
Referring to Tata Power's arrangements for coal in Indonesia, he said if circumstances called for the coal to be used in that country, Tata Power would not hesitate to do so, instead of shipping it to Mundra.