Huge investments in Power Projects Enliven SMEs in Maharashtra

A robust investment of Rs 75,000 crore for various power projects has infused new zeal among the SME power equipment manufacturers in Maharashtra. Considering the rising demand for power in the state due to increase in consumption from both industrial and domestic segments, the state government is planning to undertake several power projects individually or under public-private partnership (PPP) model.

These huge investments will be utilised for projects such as generation, transmission and distribution of power in different phases.

Big opportunity for SME players

According to SH Kudekar, Proprietor of Transpower Switchgear Industries, a mid-sized power equipment manufacturer in Ghatkopar West, Mumbai, "SMEs in the power equipment sector can benefit immensely from these projects, since investment of such a magnitude will also mean a lot of activities taking place in the power equipment manufacturing segment. Government or private players will have to depend on the SME equipment manufacturers in order to keep the budget of the projects within control."

Over the next 3-4 years, the Maharashtra government plans to invest more than Rs 60,000 crore in various power projects through state-owned power utilities. Out of this, Rs 30,000 crore will be allotted for generation projects of which Rs 15,000 crore each will be allotted to transmission and distribution projects. The remaining Rs 15,000 crore will come from the private power distribution companies.

Concern for SMEs

While addressing the concern of the SME players, Kailash Gurud, Senior Manager of Nanda Transformers India Pvt Ltd, a small-scale power transformer manufacturer in Thane, comments, "The state government should ensure that the small and mid-sized players receive substantial orders from the leading power distribution companies to manufacture various power equipments needed in the forthcoming projects."

Recent spurt in power consumption has given rise to acute power shortage of around 5,000 megawatt (MW) daily during peak hours in the state. With more industries planning to set up units in the state, the demand is expected to rise to 10,000 MW by the end of 2012.

For more detail on IT Companies log on to http://www.bizxchange.in

David Parks is a well known author and has written articles on B2b, B2B Portal, Business Directory, suppliers, Manufactures and many other subjects.