30 April 2019 | BRIDGE TO INDIA
Bid submission date for SECI’s 3 GW manufacturing linked tender has been extended again due to lack of responses. We understand that SECI has received no responses so far and it looks increasingly likely that this tender will be cancelled like its 10 GW predecessor. That pins all manufacturing hopes on the new PSU, KUSUM and SRISTI schemes. But we are not hopeful that either of these initiatives would have a more positive ending.
- Despite multiple initiatives, there has been only one significant manufacturing investment (Adani) in over 5 years;
- The manufacturing policy has been compromised by focus on cheaper power generation, poor implementation and lack of long-term planning;
- Unless there is some quick progress, the government should urgently rethink the policy;
Source: BRIDGE TO INDIA research
As this table shows, the bleak situation has forced the Indian government to come out with ever more radical ideas in the hope that something will stick. In the process, the government has ended up creating an environment of confusion and risk for the entire sector. It is time for an urgent rethink on this subject and perhaps, a retreat if things don’t improve soon.