Financial Performance of selected Units in Indian Power Sector: A Comparative analysis

Abstract

The role played by power sector of India towards the development of Indian economy can never be ignored. The growth of the industrial base of the country has strong roots in the form of contribution made by the power sector of India. Thanks to LPG, the Indian grid system is now connected to the neighbouring countries which resulted into cross-border transaction of electricity in the form of imports and exports. In 2014 the Government of India launched a scheme, namely “Power to all”, to ensure uninterrupted supply of electricity. The recent changes enhance the significance of Indian power sector. In the last decade some studies have been carried out to analyse the financial performance of Indian power sector. Most of the studies were based on data related to only one company. However, the results of the studies were contradictory in nature. Further, no study was conducted in the recent past to compare the financial performance of different units of this industry. In order to bridge the gap the present study was carried out in which all major dimension of financial performance of NTPC Ltd., NHPC Ltd., Tata Power, Reliance Infra. related to the period 2001–02 to 2015–16 were analysed and compared. Relevant statistical measures were used in appropriate places to conduct the study.