Indiabulls Power Services Limited (IBPSL)

Founded in September 2007, Indiabulls Power Services Limited (IBPSL) is part of Indiabulls Group. IBPSL has been founded as a subsidiary of Indiabulls Real Estate Limited (IBREL). Indiabulls has ventured into the power business to take advantage of the opportunity presented by the huge gap in Demand and Supply of power in India. With Electricity Act 2003 easing the regulatory environment and with State Utilities becoming financially healthy over the last couple of years, private participation in the Power Sector is booming, providing excellent opportunities for investment and nation building.

The National Electricity Policy (NEP) notified in 2005 has envisaged an ambitious target of creation of 5% spinning reserve by 2012. This requires obliteration of energy shortage across the country. However, even after one year of NEP notification, the statistics diverge significantly from what is envisaged. Instead of reduction in peak and energy shortages, they have increased significantly. In fact for the period between April 2006 and May 2006 energy shortage and peak shortage in the country were 10.7% and 13.1% respectively.

These figures are even higher from energy and peak shortages of 8.4% (about 53 billion unit) and 12.5% (11,500 MW) respectively faced during 2005-06. The main reason for this was growth in demand for power outstripping the growth in availability of power which aggravated the situation. While the energy availability grew by only 5.6, the increase in energy requirement was of the order of 6.8%. Similarly, the rate of growth in peak demand was 6.1% vis-à-vis 5.3% growth in peak met.

Energy shortage has increased during 2005-06 in all the regions except Southern Regions as compared to the previous year i.e 2004-05 and peak shortage has increased during 2005-06 in all the regions except Western Region as compared to the previous year i.e 2004-05.

India has a long way to go before it catches up with the global per capita consumption of electricity as can be seen from the graphs below.

PER CAPITA CONSUMPTION OF ELECTRICITY

COMPARATIVE PER CAPITA CONSUMPTION OF ELECTRICITY (Kwh)

India’s installed power generation capacity is 132,330 MW as of March 31, 2007. Another 78,530 MW capacity is proposed to be added in the 11th 5 year plan (2007-08 to 2011-12) to meet the growing demand for electricity in the country. According to industry estimates, domestic and foreign private companies will need to invest a total of about USD 100 billion in power projects to bridge this deficit and take India closer to the goal of power self sufficiency.