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What are the challenges faced by the electrical and related electronics industry?
Babel: There are many key issues faced by the industry. One of them being continued delay in payments and high-cost of finance. As discoms have high losses, banks perceive greater risk in funding the electrical industry. Apart from this, some of the other areas of concern include under utilisation of installed capacity, absence of level playing field in some cases, overall industrial slow down, uncertainty about ‘when will the turnaround’ really reach a satisfactory level and global economic slowdown impacting exports.
In addition to this, several discoms are unable to pay for power that is purchased and this leads to power cuts in spite of adequate availability. This will mean under utilization of generation assets and cheaper power on the exchanges. In this scenario, discoms with effective revenue management, collection systems and low AT&C losses will benefit. Tariff revisions are imminent in many states to reflect the true cost of power and delivery.
What are the expectations of the power industry in the New Year?
B A B E L : The power industry is cautiously optimistic about the New Year and expects a large amount to be spent on infrastructure along withrevival of industrial activities that require electrical equipment. In addition to this, with lower coal and gas prices as well as cheaper renewable energy equipment, the overall cost of generation is
expected to reduce.
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