India will face a power shortage in the next two years because of a fall in electricity supply, according to JSW Energy Ltd.'s Prashant Jain.
While power companies together will get 14-15 gigawatt of additional demand, Jain said, the sector will not be able to add that amount of capacity.
“Power demand is inching up and the supply situation is contracting,'' the joint managing director at the power generator told BloombergQuint in an interview.
Letter Of Credit
Jain said the power ministry's decision to ask power distributors to offer letters of credit as a security against delays in payments to generation companies is a “step in the right direction”.
In the last two-three years, “a lot of right steps have been taken by the government to help the nation's stressed power sector”, he said.
A government notification last week said power will be scheduled for dispatch only after a discom gives in writing to the appropriate load despatch centre that a letter of credit for the desired quantum of electricity to be drawn from a generating station has been opened.
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