Entrepreneurial Start-up Issues on Independent Power Producers of the Indian State of Odisha

Abstract

Odisha is the second favourite state for industry as it has attracted many Foreign Direct Investments and private sector investments. The total outstanding investment in Odisha worth over Rs 11.8 lakh crore, private sector investments account for over Rs 8.8 lakh crore, thereby registering a share of about 75% in the overall investment across the state. In order to bring an investor friendly environment, we need several measures so that entrepreneurs can be attracted like: power availability, infrastructure, Environmental Clearances, Government policies, Bank attitude etc. which helps the entrepreneurs to make a proper start-up and grow henceforth. With the achievement of national electricity policy to provide access of electricity to all, shall play an important role in the development of entrepreneurs both in large and SME sector. The fact remains that, the capacity addition in the power sector is not in tandem with the Country’s GDP growth resulting shortage of energy & peak demand. Key challenges in coming years are to achieve target generation growth-a basic ingredient for entrepreneurial growth. Odisha perspective: the state was among the few states in the country which was surplus in power till 2007-2008. The power scenario changed from surplus to deficit stage due to failure of monsoon and “Nil” capacity added in last 12 years. The power requirement of the state is expected to increase exponentially in coming years as there is rapid growth of industrial activities (including power intensive sector i.e., Steel, Ferro Alloys, Aluminium) and other mineral based industries. With reserve of power grade coal, substantial water resources, the state can sustain 1,00,000 MW power for 100 years. Accordingly the state is called “future power hub” of the country. There is inrush of investment in the private sector. 29 numbers of Generators (IPPs and PSUs) have signed MOUs with the Government and others are in the pipeline. IPPs face start up issues tagged with Land accusation, Environmental clearances, Water linkages and other local issues. This paper cites the analysis on start-up issues through direct/indirect interaction approach. The projected surplus power scenario of the state hinges on materialization of IPPs- ultimately shall affect the private investment in the state.