The domestic power sector will require ₹20 lakh crore of funds over the next five years, said Union Minister of State for Power Piyush Goyal on Monday.
He added that the power value chain is likely to provide immense investment opportunities.
Addressing the media on the sidelines of the Make in India event here, he said that according to Ministry estimates, renewable energy alone will require about ₹8 lakh crore of investments over five years.
Better industrial equipment for energy efficiency will require another ₹15 lakh crore, he pointed out.
Goyal said the Centre is looking to expand the power value chain at every stage, be it coal-based power, renewable, power transmission or even waste-to-energy plants. Last mile connectivity is also high on the agenda.
“ In the last 10 months we have focused our efforts on providing a stable, simple and predictable regulatory framework for distribution utilities, coal block allocation and creating one national grid,” Goyal said.
He further said that till date 16 States have consented to participate in the UDAY scheme for State government power utilities.
Cost saving Almost all major States have joined the scheme, that too voluntarily, he added. The scheme is expected to lead to savings of ₹1.80 lakh crore a year.
On the stalled process of allocating ultra mega power projects, Goyal said the bid documents were unbankable.
Bankers were unwilling to lend to such projects as the bid documents were faultily prepared. Soon the Ministry will approach the Union Cabinet for clearance to the revised bid documents, he added.
On the amendment to the Electricity Act, Goyal said a Bill would be tabled in the Budget session to enable a roadmap for the creation of healthy competition among power firms.