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Power Generation Sector in India- Entrance Strategies & Opportunities

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Power Generation Sector in India- Entrance Strategies & Opportunities
About 65,000 MW of thermal capacity across India runs the risk of turning into bad assets; Given a capital cost of Rs 5 crore per MW, that is upwards of Rs 3,00,000 crore at risk; much of this is bank loans as these projects, typically, came up with a 80 per cent debt component

Companies that had acquired land, signed MoUs (memorandums of understanding), coal linkages, etc are now looking to sell and exit

As per an estimate, as many as 700 thermal plants across India applied for an environmental clearance between 2006 and 2010. Between them, they were looking to add 701,820 MW of capacity—about six times India's overall power capacity in 2011 and seven times the target for the 12th five-year plan (2012-17)

The M&A space in the power generation sector in India is expected to gain further traction from hereon. InfraInsights is of the view that this is the most conducive time to buy these assets for anyone looking for strategic investment in India’s power story. Most of the Indian companies that entered into power sector with short term goals are seeing themselves being trapped into the sector and are surrounded by some of the un-expected development both on structural and commercial front, these companies want to exit from power business. There are companies that went on investment spree over the years only to find that the economic slowdown in India has hammered their balance sheets out of shape, and hence are in a balance sheet repair mode with asset offload as the only available option. InfraInsights had anticipated this well in advance and hence initiated research on the topic in 2013 in its research report M&A Prospects in Indian Power Generation Sector: Identifying Thermal, Wind, Solar and Biomass Power Plants likely to be up for Sale"" covers all such plants that are likely to become distressed asset

Request a Sample copy @ http://www.reportsnreports.com/contacts/requestsample.aspx?name=276125 .

The report is envisaged keeping in mind the need

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