In India's power crisis, China sees a business opportunity

[beijingwalker]

In India's power crisis, China sees a business opportunity

Aug 02 2012, 15:14 | By Firstpost.com

The power crisis in India, which manifested itself in two spectacular collapses of the power grids and left hundreds of millions of Indians groping in the dark, has given media commentators in the West reason to mock India's 'superpower' ambitions.

"India wants to be a power on the world stage," noted Foreign Policy magazine. "But back home it's having power troubles of a more mundane variety."

"India's power outage puts its superpower dreams in a new light," a report in the Los Angeles Times announced, noting that the blackouts would make it more difficult to attract investment.

"How could a superpower run out of power?" wondered the Daily Mail. It too said that unless India made huge investments in the energy sector, it would see many more power failures "which could jeopardise its future as a superpower."

Indian commentators too have been scathing. Writing in the Financial Times, social anthropologist Ramachandra Guha flags the outage to advance his oft-propounded theory that India will never be a superpower, but will at best muddle along.

In contrast to such derisive tones, over in China, which too faces enormous energy challenges as it keeps up a supernormal pace of growth, India's crisis is being seen as an opportunity for Chinese power equipment suppliers to open up yet more lucrative business opportunities in India.

Chinese suppliers likeShanghai Electric, Harbin Electric and Dongfang Electric, which already have a footprint in India, are counting on the expressions of outrage in India following the grid collapse for two consecutive days to speed up investments in energy projects in the next few years. Already, India has become the largest market for export of Chinese power equipment, and it only looks like it will get better for them.

In the Chinese companies' estimation, they are well positioned to feed the unmet demand in India for power equipment, given that they have already established themselves in India, are competitive on costs, and are giving local equipment suppliers, including Bhel, a run for their money. Together, they are associated in projects that are expected to generate an additional 40,000 MW of power over the next few years.

In fact, Chinese companies are so invested in India that they are beginning to grow roots here. In March this year, Shanghai Electric, which counts Reliance Power, JSW Energy and Sanjiv Goenka's CESC (among others) as its clients, set up an office in Gurgaon as a step towards eventually establishing a manufacturing plant in India.

At the inauguration of that office, Chinese ambassador to India Zhang Yan said that the opening of the Indian office of Shanghai Electric reflected the company's "long-term strategy" of cooperating with Indian counterparts. Shanghai Electric, he added, would be able to service its Indian clients and set up warehouse to supply spare parts. "Furthermore, It will prepare the ground for Shanghai Electric to set up a manufacturing base in India in the future."

That aspiration may have been advanced substantially after the recent power outage, and the expected acceleration in power projects under public pressure for services.

But even beyond the pragmatic exploitation of a business opportunity, the commentary within the official Chinese media has been somewhat more understanding of India's developmental challenges than Western media narratives have been.

Even the normally jingoistic Global Times newspaper, which is known rather more for thunderous warnings to India to not mess with China, used the occasion of the power outage in India to reflect on the commonality of the challenges that India and China face.

"The most serious blackout in human history was not caused by any one factor, but actually reflects the overall level of India's development," it observed. "Other developing countries including China can use the incident to reflect on their own problems."

Like India, China too needed to generate more power to support higher living standards of the people, the daily noted. Yet, there were difficulties in further expanding electricity production. "Thermal power is limited by the accessibility of more coal and oil. Building more hydropower stations is facing stronger resistance from public opinion."

And prospects for developing nuclear power had dimmed after the Fukushima nuclear meltdown in Japan in 2011. And although the wind power industry was growing fast, it could not be expected to play a major role in the country's power grid.

"India is stuck in a dilemma, but China is also facing a developing bottleneck," it added.

India's crisis is being seen as an opportunity for Chinese power equipment suppliers to open up yet more lucrative business opportunities in India.

 

[SpArK]

Oh Dear !!!!!!!!!!!

 

[somebozo]

Fact:
Even western media believes India supah power talk is a bunch of bull but they act like listening to it just to oil the business wheel and milk the cow.

 

[Jackdaws]

I agree that India's superpower ambitions are nothing but jingoistic chest-thumping. Because being a superpower should not be reflected in the size of the economy which is bound to be huge because of India's size - it should be reflected in the standard of living of its people which sucks in India.

 

[Kyusuibu Honbu]

I agree that India's superpower ambitions are nothing but jingoistic chest-thumping. Because being a superpower should not be reflected in the size of the economy which is bound to be huge because of India's size - it should be reflected in the standard of living of its people which sucks in India.

When did India ever have a superpower ambition?

 

[Hellraiser007]

No need for Chinese , India had already investing in Nuclear energy to meet future demands, It is funny that the same China which opposed the civilian nuclear deal between US and India is saying these words.

The Power grid failure also happened in US, Indians restored the grid in less time than US.

 

[Dark Warrior]

Fact:
Even western media believes India supah power talk is a bunch of bull but they act like listening to it just to oil the business wheel and milk the cow.

The world's greatest power USA had a grid failure in 2003 and 2009.
Hell,even USA had million without power:
Millions without power as heat wave hammers eastern US - Weather - NBCNews.com

 

[kawaraj]

India has a bright future if she ignore the evil intention-ed fanning of superpwoer talk by the west.

India's future rely more on China and Pakistan than on the west, IMHO. As soon as regional integrity begins no one can stop India from being a world power. but Yeah this tone is marginalia by the west controlled Indian media.

Who is listening to the west? Indian GOV and media..
who is stirring up tensions between India and Pakistan? Indian media(west backed).
who is stirring up tensions between Indian and China? Indian media(west backed).

 

[Punjabbi Munda]

A grid failure drawing so much flak? US grid failure was much more worse and India restored it much earlier,poor authorship to link it with power crisis or 'superpower'.

 

[Hellraiser007]

India has a bright future if she ignore the evil intention-ed fanning of superpwoer talk by the west.

India's future rely more on China and Pakistan than on the west, IMHO. As soon as regional integrity begins no one can stop India from being a world power. but Yeah this tone is marginalia by the west controlled Indian media.

Who is listening to the west? Indian GOV and media..
who is stirring up tensions between India and Pakistan? Indian media(west backed).
who is stirring up tensions between Indian and China? Indian media(west backed).

India by itself is self sufficient and has all the resources to develop. Indian subcontinent is an ancient power and a great economy, Indians reach out for the west for tech transfer so that soon we can establish the good tech base here in India. We can rise quickly.
Pakistan is always viewed as suspicious neighbors after 1999 kargil attack. Chinese and their real intentions are not clear and the SCS row had made it clear that they are not to be taken lightly.

 

[trinity]

Sounds like this power outage was part of a plan

 

[kawaraj]

India by itself is self sufficient and has all the resources to develop. Indian subcontinent is an ancient power and a great economy, Indians reach out for the west for tech transfer so that soon we can establish the good tech base here in India. We can rise quickly.
Pakistan is always viewed as suspicious neighbors after 1999 kargil attack. Chinese and their real intentions are not clear and the SCS row had made it clear that they are not to be taken lightly.

worry no easy tech transfer they will put embargoes or allege your are stealing their techs.

know developing is no easy way they just think you are inferior race and don't deserve a better life, just as Obama once said if All Indians live a life like the west the whole world will only collapse for shorting of resources.

 

[harpoon]

I agree that India's superpower ambitions are nothing but jingoistic chest-thumping. Because being a superpower should not be reflected in the size of the economy which is bound to be huge because of India's size - it should be reflected in the standard of living of its people which sucks in India.

Did GoI ever said that we have super power ambitions? I always heard of our leaders saying that we have our problems to solve. Its the west who says that India is a super power and then trashes us bcs we we don't have power, toilets etc .Its something of a sick mental game.

Who is listening to the west? Indian GOV and media..

Nope..

who is stirring up tensions between India and Pakistan? Indian media(west backed).

Nope...your 'Non-State' actors are enough.

who is stirring up tensions between Indian and China? Indian media(west backed).

So you think Chinese claim on Indian land and their deployment of forces on Indian border, building of network of roads & railways and even deployment of missiles in Tibet have nothing to do with it.

 

[Icecreamcart]

India still has a long way to go. Current energy generation is still inadequate to meet off-peak demand.

And it's ironic that distrust of the state power grid leads to Indian companies being prepared for blackouts with their backup generators. With the effect of the blackout lessened, the impetus for the government to change would be even less, until an even greater failure occurs.

As well, energy subsidization in India is a failed policy as it deters privatization with energy generation as unprofitable is it already is, with the state companies running in debt to operate.

Even with all the problems settled, the Chinese companies won't be able to get into the market. The politicians would be too fearful of the backlash by patriotic voters.

 

[oct605032048]

Match and Candles?