Following some early success by Tata and Torrent Power, investing into power generation in India seemed like a no-brainer. Yet, a large pipeline of new power capacity is coming online, but the utilities have limited appetite to buy more power. Wood Mackenzie estimates that the surplus generation capacity could reach 25 GW by 2015, if reforms are not undertaken to unlock stronger power demand growth.
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India entering into power surplus?
Capacity buffer is generally a good thing, but India's case is different