One of the biggest head-aches that any new company starting its business in India has to face is- Shortage of electricity. Especially, if it is a technology oriented business, you have no choice, but to put a lot of money in back-up generators and UPS units.
For an Indian, Electricity outage is not a big thing, but across the world, it is non-extinct. I have been living in US for few years now, and I would say that I have not witnessed it more than a couple of times and that too due to circumstances like storm or whirlwinds.
India has to take drastic steps in this area rapidly. It has a serious shortage, and India’s fast paced growth is not helping it either. India must build hundreds of new power plants over the next five years to end the massive electricity shortages. Infact, India’s economic growth is under threat, if India is not able to overcome this problem.
Currently, the Electricity shortage is around 25% during peak hours, causing frequent outages and forcing shutdowns at factories and businesses.
There are couple of important reasons why India’s electric generation capacity has not improved, even though this sector has been privatized by Indian Government for more than 10 years now.
1) Very few companies have invested in India due to regulatory bottlenecks.
2) India has to cater to huge amount of Electricity theft.
Most of India’s electricity is currently generated by coal-fired power plants, but the country also has some hydroelectric and nuclear generating capacity.