A Summary of the Power Sector

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We can divide the power sector into four difference stages .Normally the manufacturing power equipment and power generation units come under oligopoly . The power transmission and power distribution come under monopoly.

BHEL ,NTPC are India's leading power equipment manufacturer, and has established its competitiveness against multinationals in the field. There are many power manufacturing companies so it forms a oligopoly.The selection of modes of production and their economic viability varies in accordance with demand and region.

Various types such as hydroelectric plants, nuclear power plants, thermal power plants and renewable sources are used to generate power. They have there own pros and cons and selection is based upon the local power requirement and the fluctuations in demand. There are many power generation companies such as NTPC, Power Grid Corp, Reliance Power, Tata Power, NHPC, Neyveli Lignite, Reliance Infra, Adani Power, Jaiprakesh Power, JSW Energy, SJVN etc. Although there are many companies to produce electricity ,the purchasing agency buys electricity from all the major power generation companies on the basics of long term contracts at the defined prices ,date and in terms of delivery .So there is a conversion of oligopoly to monopoly at this stage.

Power Transmission in India is monopoly.
As per the Electricity Act 2003, the Central Transmission Utility and State Transmission Utilities were to be created to co-ordinate the entire nation’s transmission of electricity. Power Grid Corporation of India Limited (PGCIL) was announced as a monopoly for power transmission. Being the world’s fifth largest electricity sector of the world, controlling, by itself is a herculean task. Henceforth, the government decided in March 2005 that Power Grid Corporation of India (PGCIL) to deprive its monopoly status in the power...
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