Energy And Infrastructure Law In India: An Overview - S.S Rana & Co

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Energy & Infrastructure

Energy and Infrastructure Law in India

With the increasing awareness regarding renewable sources of energy, the dependency on non-renewable sources of energy in India is decreasing although at a slow pace.

The Ministry of Power is vested with the responsibility of development of electrical energy and the Ministry of New and Renewable Energy is vested with the responsibility of promotion of renewable energy resources in the country in order to enable ecologically sustainable growth.

India is slowly and gradually shifting its dependence for energy demands from fossil fuels to renewable sources.

As a developing nation, it is of utmost importance that a strong and updated set of laws govern the energy and infrastructure development in the country. The government of India has been pushing for reforms in the Energy and Infrastructure sector in the recent years. The upcoming years are set to witness huge developments in the energy and infrastructure sector not only from the perspective of the government’s policy initiatives but also from a common man’s perspective.

Energy law in India

The electricity industry in India is primarily governed by the Electricity Act, 2003 and Energy Conservation Act, 2001. The Electricity Act consolidates the laws pertaining to generation, transmission, distribution, trading and use of electricity and generally for taking measures conducive to development of electricity industry. The Energy Conservation Act, 2001 lays down the regulatory framework for the efficient use of energy and its conservation.

Business Opportunities in the Indian Energy and Power Sector

The Government of India has recognized the energy and power sector as one of the crucial and key components of growth for the Indian Economy. It is also believed that India’s energy and power sector has a huge untapped potential for International investment. Schemes floated by Government like DDUGJY (Deen Dayal Upadhyay Gram Jyoti Yojana) and IPDS (Integrated Power Development Scheme) coupled with approval of 100% FDI in the electrical machine industry are accounted for this huge growth in demand of electricity.

The Infrastructure sector is the key to the overall development of India’s economy and this sector holds massive potential as well. Sound decisions are required at every stage and aspect of an infrastructure project including the conceptualisation stage, analysing the risks involved, investment, contracting, energy management etc.

Hence, whether it is a big infrastructure project involving development of an airport or development of a short road, there are several players that play an important role in the infrastructure project apart from contractors and developers namely, the Government, banks, investors, local regulatory bodies etc.

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