As we reflect on the performance of the fiscal year 2022-23, I am filled with a sense of achievement and pride. This year presented us with a range of challenges and opportunities, and I am delighted that SEIL successfully navigated through them with strategic foresight and resilience.
As India progresses towards becoming the world’s third-largest economy, we at SEIL are fully committed to play a pivotal role in meeting the country’s energy requirements to sustain the growth.
The global economy has been steadily recovering, accompanied by an increase in energy demand. However, this path to recovery has not been without obstacles. Geopolitical tensions and fluctuations in commodity prices have created an environment of uncertainty. The conflict between Russia and Ukraine has particularly heightened concerns about energy security among policymakers and industry leaders worldwide. By adopting a dynamic coal procurement strategy and building in coal grade acceptability within its operation, your company was able to persevere in the face of these obstacles, delivering a solid operational performance.
Steady demand growth supported by strong policy and regulatory measures have fostered a thriving and sustainable power sector.
The power sector has experienced consistent growth, fuelled by increasing demand, the goal of universal electricity access, and the shift towards electric mobility. It acts as a catalyst for multiple industries such as manufacturing, agriculture, healthcare, and education, leading to economic development and enhancing quality of life.
India witnessed its highest ever year-on-year growth in power consumption during FY23, with a remarkable increase of 9.6% per annum, reaching 1512 BU compared to 1380 BU in FY22. This surge can be attributed not only to the robust GDP growth of 7.2% per annum in FY23 but also to a heat wave experienced during the summer of 2022. Looking ahead, as the projected GDP growth for FY24 is above 6% the focus on 24x7 power supply and the increasing adoption of electric vehicles (EVs) are expected to sustain high demand growth in the coming year. Furthermore, in the long-term, the demand is anticipated to remain strong, estimated to reach 1908 BU by FY27 and 2474 BU by FY32.*
In FY23, the government introduced several policy initiatives. The Late Payment Surcharge Rules were particularly significant as they aimed to address the need for a payment security mechanism for power sales and outstanding dues. Implementing these rules has streamlined the payment process and reduced outstanding receivables from the Discoms.
Another important step taken by the Ministry of Power was amending the Electricity (Rights of Consumers) Rules. The objective was to ensure 24x7 power supply to cities with a population of more than 1 lakh. State regulators were also mandated with monitoring interruptions as part of discom reliability indicators.
Furthermore, with the increasing penetration of renewable energy, there are challenges in planning and operating the grid due to its variable generation profile. Policymakers have recognized the need to strike a balance with other generation sources to fully utilize the benefits of renewable energy. To support conventional power generation, the government has encouraged investments to improve coal production and has also issued supportive policies for the development of transmission systems.
As we strive for sustainable energy generation, we constantly set new benchmarks for operational efficiencies and redefine paradigms. Our primary focus is on building enduring and trusted relationships with discoms, partners, employees, and other stakeholders. We firmly believe that caring for our communities is the foundation of our long-term sustainability.
Despite ongoing geopolitical tensions and market fluctuations, we have continued to generate power sustainably while maintaining strict adherence to global standards of operations and local environmental protocols. Leveraging our robust risk management policies to mitigate grade and geographical dependency, SEIL’s in-house logistics team was able to respond to these uncertainties promptly.
Our pursuit of operational excellence encompasses efficient fuel sourcing, a customer-centric approach, and reliability. Despite the challenging power sales market, SEIL’s operations maintained an average Plant Load Factor (PLF) of 73.51% and achieved positive PAT results.
Some of the other highlights during this period are as follow:
At SEIL, the health, safety and well-being of our employees are of utmost importance. We are dedicated to fostering a strong safety culture throughout our operations. In FY23, SEIL achieved a certification for 5S workplace management and received recognition with the Frost & Sullivan-TERI Runner-Up Challenger Award
We are continuously integrating our operational processes to ensure swift action in response to any unforeseen incidents that may affect the health and safety of our workforce. I am proud to report that, even during these challenging times, the courage demonstrated by our employees has enabled us to maintain the highest levels of safety standards and precautionary measures.
As I peer into the future, I envision India’s power sector playing a crucial role in the country’s economic progress and contributing to the energy security. A people-centric approach, supported by well-designed policies, will not only help India forge a sustainable and more inclusive energy future but also serve as a model for other nations and communities worldwide seeking a balanced energy mix. Our long-term strategic goals remain guided by our commitment to providing reliable power and we are confident in our ability to achieve the same, creating value for our investors.
During the year, the consortium lead by Oman Investment Corporation SAOC which focuses on private equity investments and asset management business through its special purpose vehicle Tanweer Infrastructure SAOC, Oman acquired 100% of the shareholding in your Company from erstwhile promoters Sembcorp Industries Ltd, Singapore from January 19, 2023. Pursuant to the same, the company has now become the 100% subsidiary of Tanweer Infrastructure SAOC.
I extend my heartfelt appreciation to all my colleagues for their dedicated efforts, showcasing our culture of resilience and adaptability during these challenging times. I would like to express my gratitude for the unwavering trust and support we have received from our stakeholders, which will strengthen their positive association with SEIL in the years to come. Furthermore, I am thankful to the Board of Directors including the erstwhile Board members from SCU and our new promoters for their continued commitment, invaluable guidance, in supporting the company and its business.
Whole Time Director & CEO