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The power sector is in full energy. And why not, considering the power ministry麓s recent roll out of a Rs 10,000 crore project for the eight north eastern states. Although it ranks among the top sectors that breed maximum number of stalled or delayed projects, reports indicate that stalled projects on the Teesta in Sikkim are expected to be completed by 2015. Report card Increased focus of the Centre has helped the power sector with a clear policy roadmap including the rejection of anti-dumping duty on solar cells as well as the measures taken to protect the domestic industry under the Make in India campaign. 篓The state governments too have shown tremendous interest to harness this resource and we witnessed successful tenders by states like Andhra Pradesh, Telangana, Chhattisgarh and others,篓 says Manoj Kumar Upadhyay, Founder & Chairman, ACME. The move to provide 24 x 7 power across the country by March 2019 and revised goal for National Solar Mission is also a welcome step forward and will help the renewable sector in the long run. Further the recent policy roadmap has delivered the desired boost to the sector and it is expected that solar power will reach grid parity in near future. Suparna Chattopadhyay, Head-Capex, CMIE, informs that there are plans to set up a monitoring group, specific to the power sector. CW has learnt through sources that the Power Projects Assessments Society, a panel of consultants responsible for ongoing power generation and transmission projects, will most likely facilitate the removal of bottlenecks. Contractor zone KEC recently bagged construction of a transmission line in Jammu & Kashmir and two GIS substations in the Leh Kargil area. The area is tough - largely dominated by mountains and uneven terrains. However, the company is confident that with its engineering capabilities, the project will be executed by adopting mechanised and modern construction techniques. McNally Bharat Engineering Company Ltd works in power plants generally on the power generation side which includes Balance of Plants, coal handling systems, ash-handling plants, water system, switchyard, etc. 篓But this segment has not yet picked up and major tenders are yet to be announced,篓 says PK Chandra, Wholetime Director & COO, McNally Bharat Engineering Company Ltd. He further informs that the company recently diversified into substations, which are on the power distribution side. 篓While movement in the generation side is slow, it is faster on the distribution side.篓 In the last 10 months, Acme has bagged six contracts worth approximately Rs 3,254 crore to develop about 409 MW solar projects across India. With work yet to be executed, Upadhyay says, 篓The industry requires a clear roadmap with efficient systems to accord all approvals on time, efficient disbursal of fund flow for effective implementation of the projects and complete participation of the private sector.篓 Challenges Land acquisition has been a major challenge. And, Vimal Kejriwal, Managing Director and CEO, KEC International Ltd, adds, 篓Right of Way is also a challenge for transmission line construction companies.篓 Arbitration is another area of concern. Although an alternate dispute resolution mechanism, the ground reality is that the arbitration proceedings in most matters take several years. This needs to be simplified. Also, many power plants have stopped either at the construction or commissioning stage. Chandra says, 篓Issues related to coal linkage, power purchase agreement and the cost of the power projects going high led to a stalled and delayed situation. Execution of these projects will give further impetus to power generation projects." POWER: CW'S RECOMMENDATIONS There has to be long term arrangements for coal. Through the input-based distribution franchisee model, one can get results within two years and bring down the losses significantly. For this, it is crucial to reform utilities and improve balance sheets. State Electricity Boards should be instructed to sign Power Purchase Agreements (PPAs) as they are getting attracted towards low rate merchant power. Low cost merchant power can easily lead to aggressive bidding, and recovering cost will be the challenge further leading to issues of restructuring and other financial burdens. While the government麓s thrust is on renewable energy - in terms of funding, assessing and assisting the developers, there has to be some enabling policies to promote wind and solar.