The long-term prospects of the Indian power sector, despite uncertainty over the past few years, remain strong. The next 10 years will likely redefine the industry.
After nearly a decade of rapid growth marked by reform and investment, India's power sector has reached a new period of skepticism. Long-standing concerns about fuel availability, the financial health of state-owned distribution companies (discoms), and land and environmental issues have bubbled back up to the surface. Meanwhile, rising costs could threaten the viability of new projects (see sidebar: India's Power Industry Phases).
However, the Indian power sector still holds much promise for its stakeholders. Despite a gloomy short-term picture, the medium to long-term outlook appears to be much more optimistic.
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