India's Leading Infrastructure Companies

India's Leading Infrastructure Companies 2015

Q. Please give us brief profile of the company:
A: ARKAY ENERGY (RAMESWARM) LIMITED is an Independent Power Plant (IPP) of 150 MW Natural Gas based combined cycle power plant including 8 MW secondary generation located at Valathur Village, Valantharavai Panchayat, Ramanathapuram District, Tamil Nadu. This is the biggest gas engine based combined cycle power plant in India. This plant has commenced generation in March 2006 and supplying the entire power generated to the Tamil Nadu State Grid TANGEDCO. Further capacity addition of 35 MW is under implementation enhancing the total plant capacity to 185 MW. The plant has been operating profitably ever since inception.

Q. W hat are the major challenges faced by the power sector and what do you reckon can help overcome these challenges?
A: I. FUEL: One of the major challenges faced by the power sector is availability of fuel.

  1. Coal Most of the power plants in India are facing shortage of coal and are operating below the rated capacities because of the short supplies from Coal India Limited. Added to present problem of fuel shortage, the cancellation of coal blocks will be a major impediment in the growth of power sector and needs to be addressed by the Government on priority.
  2. For gas based power projects major capacity is stranded and construction of LNG terminals should be taken up to ensure the supplies meet the demand and more focus should be given to run gas based plants as peaking power stations to the maximum extent possible.
II. TRANSMISSION LINES: Another major constraint is the availability of transmission corridors in the inter-regions. Right of way issues are causing tremendous delay and becoming the major bottlenecks in the execution / construction of transmission lines. Government should come out with new guidelines for addressing the right-of-way issues in execution of transmission lines by bringing in new legislations.

Q. W hat kind of reforms would you like to see to boost the power sector in India?
A: i. ENVIRONMENT AL CLEARANCE: The time taken for getting environmental clearance has be to narrowed down considerably and more stringent self-regulations can be imposed with huge penalties. This will not only save valuable time considerably but also make the company more responsible.
ii.PROJECT FINANCE: The sectoral ceiling norms for the Banks to finance power sector needs to be relaxed. Also, the stringent guidelines with respect to COD laid down by Reserve Bank of India needs to be reviewed and relaxed for power sector in view of various uncertainties associated in the implementation of power projects which would lead to delays in the commissioning of the project.

Q. What opportunities do you see for the power sector in the next five years? Is your company looking towards alternative sources of energy?
A: With the projected GDP growth rate of 6.5% to 7% and with a very stable government at the Centre, the demand for power will be huge and with the existing shortfall of power, the sector is definitely going to do very well in the decades to come. Moreover, with the commitment of our Honourable Prime Minister to supply power round-theclock to every village, we need to add at least 200,000 MW in the next seven years. Hence, the opportunities are manifold in the power sector. Our company is also focusing on SOLAR ENERGY and has already acquired land to set up a 100 MW solar power plant in the near future.