Private power generating companies seek sops on electricity export

• Privately-owned power gencos have requested the Centre to provide relaxations on duties and provide incentives for exporting electricity to neighbouring countries.

• Currently, India exports 1,200 Mw to Bangladesh, 450 Mw to Nepal and 3 Mw to Myanmar and imports around 1,200 MW power from Bhutan.

Significance of the move:

• India has a power production capacity of 375 GW, while peak demand is close to half at 184 GW, which renders surplus capacity unused.

• Allow gencos to earn foreign exchanges thereby offsetting losses.

• Provide cost-effective and reliable power to neighbours who are highly dependent on hydro power or on costly liquid fuel sources.

• Helps India to strengthen its strategic position in the region, thus countering China’s increasing influence.

India’s efforts towards regional energy cooperation:

• First phase of One Sun, One World, One Grid (OSOWOG) deals with Middle East-South Asia-South-East Asia.

• OSOWOG aims to connect 140 countries through a common grid to transfer solar power.

• In 2018, Ministry of power had issued guidelines for import/ export of electricity and provided a policy framework for cross- border electricity trade.


Mains Paper 3: Economy

Prelims level: One Sun, One World, One Grid

Mains level: India’s efforts towards regional energy cooperation

Subscribe to Get Weekly updates

Get daily current affair video, detailed current affairs PPT for quick revision and Free One Liner PDF directly in your inbox. Subscribe now to get this month's one liner for FREE.