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Last Updated : May 10, 2017 02:11 PM IST | Source: Moneycontrol.com

Foreign power cos shouldn't operate here if their countries bar Indian cos: Goyal

Power Minister Piyush Goyal said that there has to be a give and take mechanism between countries for the industry to flourish.

Coming down heavily on countries that don't allow Indian companies to operate in their markets, Power Minister Piyush Goyal stressed there has to be a give and take mechanism between countries for the industry to flourish. He added that companies from such countries shouldn't be allowed to operate or invest in India's power sector.

"Reciprocity will be the rule. Either they open up for us, or we close down for them,” he told The Economic Times.

Earlier this year, the minister had stated that the investment potential of Indian power sector will be at Rs 15 lakh crore (USD 225 billion) in the next 4–5 years, thereby providing immense opportunities in power generation, distribution, transmission, and equipment. Also, around 293 global and domestic companies have committed to generate 266 GW of solar, wind, mini-hydel and biomass-based power in India over the next 5–10 years. The initiative would entail an investment of about USD 310–350 billion.

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Goyal also highlighted the fact that India has the most liberal foreign direct investment (FDI) regime in the world and few companies are taking advantage of that by making one-sided gains. These firms are benefiting from the vast Indian market but are protecting their own market and not allowing Indian companies to enter their business.

The move could spill bad news for companies overseas as India offers major projects for international bidding in the power sector. Both transmission and power sector are growing at a fast pace with big-ticket projects. The former has a project worth Rs 6,000 crore in its kitty and the latter has expanded 370 percent in three years.
First Published on May 10, 2017 01:29 pm
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