The economic woes of private power producers are unlikely to disappear for at least two more years, according to equipment maker Alstom India.

Demand for turbines and boilers is expected to remain low from the private sector till the end of the 2016-17 fiscal, said Rathin Basu, Country President of Alstom India.

“There are several issues that need to be resolved here relating to fuel supply and banks providing loans or restructuring debt. The private sector will take time to revive investments as they wait to get coal linkages and get their financing from banks,” Basu told BusinessLine .

However, while the private sector investment looks bleak, a new category of investors has emerged with several large projects. “We are seeing a new initiative in several States where State gencos (power generating companies) are coming up with large, stable projects. For the next year or two, demand will be driven by NTPC’s expansion plans and capacity addition from State gencos,” he added.

Even in the transmission and distribution side, Basu said it will be the Government’s expenditure to augment the existing infrastructure which will drive demand.

“In transmission and distribution, there is a clear road map for demand growth laid out by Power Minister Piyush Goyal, who has stressed on the need to upgrade the infrastructure.”

Alstom India is also in the process of finalising two more investment proposals to augment the existing manufacturing facility — one expanding the transformer manufacturing facility and the other for manufacturing super critical turbine generators in Sanand, Gujarat.

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