Power Sector Scenario

Power is a critical infrastructure for economic development and for improving the quality of life. Today the nation is facing an Energy deficit of 8.8 % and a Peak Demand deficit of 14 %. India now is bubbling with a lot of Economic activity with a GDP growth rate of more than 9 %. The catalyst to sustain this growth rate in future will be none other than the availability of Power. To meet the projected GDP growth rate of 8-9 % in India, we may need a growth rate of not less than 20 % in the Power Sector.

The Power sector scenario in India is now facing a new kind of dynamism. A sector that was earlier monopolised by State Electricity Boards as well as select few Public Sector companies, has now seen the rapid entry of so many private players, who all wish to have a piece of the delicious cake. The "Power for All by 2012" slogan of the Indian Government has created a frenzy among these Power honchos.

A sector that is highly capital intensive, but also promises of assured returns. It doesn't have a product life cycle which prophecies a decline after some time..... Power will be required for generations to come or until our future progeny comes up with some radical source of energy. Till then, Electricity (the class of phenomena arising from existence of charges) is here to stay.

The Public Sector companies, till now had nothing to fear about. They never even bothered about strategic management or long-term planning. Thanks to the entry of competition, these companies have now opened their eyes to a new scenario , where nothing is assured and for everything, you have to be better than the rest, especially, in keeping the right people at the right place.

An attrition rate that was hitherto in decimals, has now seen a jump and has reached single digits. Not worth mentioning if compared to the booming IT sector, but dangerous enough if compared within the industry. The mantra now is not maximum power generation, as most of these companies have already achieved operational excellence. The maxim to be followed is "Talent Management". I am sure, when McKinsey coined this term, they had no idea that this will take the shape of a religion in itself. The buzz words have now shifted to "Creativity" "Innovation" "Fun-place to work" ....... all these terms which were till now considered shallow in Public sector companies. And now, every food grain is garnished with them.

Consider the case of one of the state owned Nuclear Power Company in USA. With a mammoth increase in the percentage of working cadre retiring in the next 10 years, and the fact that Power Engineers are in great demand everywhere, they literally had to turn a new leaf. A new talent model itself, which gives importance to the grooming of Power Engineers from school .An industry academia tie-up which will ensure the continuous flow of Power soldiers into the company's battalion. The idea was borrowed from German companies as well as the Japanese firms like Toyota, the target is to entwine the talent pool in the culture of the organisation so that they breathe the company itself.

Its high time that the Indian Power companies took a cue from their counterparts and strive hard to maintain their treasure - People!


(Will come back with strategies to attract and retain talent)