India Insight

Tata Power scouts for opportunities abroad

(Any opinions expressed here are those of the author and not necessarily of Reuters)

Tata Power Company Ltd, part of the salt-to-steel Tata conglomerate, is India’s largest integrated power producer. It aims to generate some 20,000 MW by 2020, up from more than 8500 MW now, and is scouting for opportunities abroad as well as building its thermal and renewables business at home.

Like its peers in the industry, the company has faced problems of land acquisition and fuel supply shortages in developing new projects, projects that are seen as key to help revive India’s flagging economy and fix blackouts.

Moreover, its plant at Mundra in Gujarat has been hit by a jump in the cost of imported coal, and Tata is still waiting for a decision in April by India’s power regulator, the Central Electricity Regulatory Commission (CERC), to come in to force to allow it to raise tariffs to existing customers.

(Related blog: Counting the cost of India’s power cuts http://r.reuters.com/pep48t )

Is India really the world’s fifth most powerful country?

India is the world’s fifth most powerful country, according to a New Delhi-authored national security document, the Times of India reported on Wednesday, as Indian analysts placed the emerging nation above major European powers.

Outranking traditional global powers such as the UK, France and Germany, India’s ballooning population, defense capabilities and economic clout were cited as reasons for its position behind only the U.S., China, Japan and Russia in India’s National Security Annual Review 2010, which will be officially released by the country’s foreign ministry next week.

Its statistical foundations in terms of population numbers and GDP aside — in terms of purchasing power parity, it should be noted — India’s experience of wielding power on the global stage of late, boosted by its temporary seat on the United Nations Security Council, has been less encouraging.

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