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Power Transmission Towers

Saturday, January 31, 2015

The market size of transmission towers was valued at Rs 35 bn in 2005-06, growing from Rs 11 bn in 2000-01. The market increased by over 30% to reach Rs 45 bn in 2006-07 and further by about 40% in 2007-08, about Rs 64 bn. The industry segment thus achieved a very impressive expansion. Imports accounted for an insignificant component of the total market and was valued at Rs 217 mn in 2005-06.

Transmission towers constitute a major component of infrastructure for the power sector. These carry the load of power conductors. With the expansion of power generation, the length of transmission and distribution lines has also gone up.

The four companies claimed a major share of more than 70% in the industry. There was a steady build-up of capacity prompted by highly publicized independent power projects (IPPs). A considerable amount of hope was pinned by the industry on these projects with private and MNC investments. The procrastination in bringing projects off the ground has led to non-achievement of the targets.

Although in the near term the industry's performance may be subdued, but in the long-term prospects are good for the industry. Given the emerging power needs and the backlog on achievement of slated targets, the industry could be in for a boom period as large private energy projects come off the ground.

Source: NPCS Team

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