On
Power Sector in India
INDEX
Executive Summary
3
Introduction
4
History of Indian Power Sector
5
Classification of Power Sources
6
Current Scenario and Opportunities Ahead
8
Michael Porter’s 5 Forces
10
Barriers to Entry
10
Bargaining power of Buyers
11
Bargaining power of suppliers
12
Rivalry among Competitors
13
Threat from Substitutes
14
Annexures
I – Classification of Power
15
II- Percentage of sectors generating power
15
III- Percentage of sources of Electricity
16
IV- Capacity addition from non-conventional energy sources
16
V- Bargaining power of Buyers
17
VI – Threat from Competition
17
VII- Threat from Substitutes
18
VIII – Bargaining power of Suppliers
18
IX- Barriers to Entry
19
X- Overall Rating
19
Bibliography
20
Executive Summary
India is one of the fastest growing economies in the world and since it also has one of the largest populations in the world, it is a very attractive destination for sectors like power. Along with the growing population and economy, there is a rising demand for power because of the dependence on electricity from industries and household alike. This report contains a brief overview on the current status of the power sector in India and the comparison with the previous production of power.
Michael porter’s five forces model has been used to analyze the various aspects of the industry from the point of view of the industry itself. It considers factors like entry barriers, bargaining power of buyers, bargaining power of suppliers, threats of substitution. Threat of a new entrant, competition in the market, etc. the overall observation has been in favour of the companies within the industry.
The demand for power is higher than the supply and even though this is unhealthy for the economy, the Government is trying to provide incentives to boost this industry though the Electricity Act and the National Electricity policy.