India requires a further 100GW of power
The Indian government hopes to grow the country's economy at 8 to 10 per cent annually up to 2031, which means it will need to produce five to seven times more electricity than today.
This requires a further 100GW of power, calling for investments of around US$200 billion, including transmission and distribution infrastructure.
The growth is being driven in part by India's cement consumption, the world's second largest after China. It is growing at 9 per cent annually because of a boom in housing and infrastructure construction.
Currently, India is the sixth-greatest electricity generating country and accounts for about 4% of the world's total annual electricity generation. It is also ranked sixth in annual electricity consumption, accounting for about 3.5 per cent of the world's total annual electricity consumption. Annual electricity generation and consumption in India have increased by about 64% in the past decade.
GE Energy Financial Services has taken advantage of this situation to lend INR75 Crores (US$ 17 million) to Binani Cement Ltd for construction of a 22.3MWTh power plant and associated facilities in Sirohi, Rajasthan, in north India. This will enable the company to meet its enhanced power requirement to expand cement production by April of this year from 2.25 million metric tons to 5.3 million tons annually. Binani Cement also plans to build a second 22.3-megawatt power plant.
Colleen Harkness, managing director and head of global growth at GE Energy Financial Services: This finance package will cut costs for Binani by nearly US$4 million annually and provide a highly reliable electricity source.”
To penetrate the India marketGE Energy Financial Services began operations in New Delhi last autumn and will open an office there during the second quarter of this yearto be headed by Raghuveer Kuradaan energy investment professional.
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