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Pestle Analysis of Power Industry

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Pestle Analysis of Power Industry
Power Industry
Global Scenario 2012
National Perspective 2012
Macro Environment
SWOT analysis
PEST Analysis
Inter Industry Study
Intra Industry Study
Study of Firms within the Industry
Study of the Structure of the Industry
Industry / Firm’s Health
Innovation in the Industry
Michael Porter’s Model
Seven P’s for Marketing
Seven R’s of Market Research
Gap Model in Services
Mckinsey 7’s Framework
Any other Relevant Model
Logistics and Supply Chain Management
Strategic Management Issues
WEDNESDAY, SEPTEMBER 17, 2008
PESTEL Analysis of Power sector

PESTEL Analysis

Political/Government policies Analysis:

In India, the subject of electricity is covered under the Concurrent List in the Constitution of India, implying that both the central government and state governments have the power to make legislation for the sector. As a result, all major issues affecting the power sector require concurrent action by the central government and state governments. The allocation on power development during the first four Five Year Plans (FYP) was very low i.e. 10-15 percent of the total outlay. The low allocation of budget in power sector hampered the rural & urban electrification, and power generation capacity. With rapid industrialization and extensive demand for power both in rural and urban areas, the country has been reeling under severe power shortage and the country’s production effort has been severely curtailed by load shedding almost in all parts of country.

As it is a subject of concurrent list so each state has developed its own electricity policy and pricing based on its own interest rather than thinking of country as a whole. The different pricing regimes and distribution policies of state governments further aggravated the power situation. The low collection of revenue makes condition burst & slow down the growth Of SEBs and subsequently effect on the power syste. Another reason for the power system’s non-viability is the skewed

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