One of the most frontrunners and may be the leading organization in the foreign investment segment in India, CLP India Pvt. Ltd., is exploring the possibility of acquisition to get into the transmission business, even at the stage, where the profitability is under great threat, due to low tariff in the green energy segment.
This development occurred in such a time, while country’s power sector is going through a phase of development in the per capita power consumption, in the tune of 1,200-kilowatt hour, which is considered as the lowest band in the world.
An expert in the sector said “Given the uncertainties surrounding the renewable space, increasingly more large-scale utilities will look at opportunities in the transmission and distribution space. CLP is trying to enter the Indian transmission sector.”
It is known fact that the transmission sector is regarded as the safer option of investing, due to its annuity nature and risk factors, such as; acquisition of land, the right of way (ROW), forest and environment clearance are predominantly limited to the stage of construction.