An Overview of Dividend Scenario in Power Sector

Abstract

Indian power sector is undergoing a significant change that has redefined the industry outlook. Sustained economic growth continues to drive electricity demand in India. The Government of India's focus on attaining 'Power for all' has accelerated capacity addition in the country. At the same time, the competitive intensity is increasing at both the market and supply sides (fuel, logistics, finances, and manpower).Total installed capacity of power stations in India stood at 330,260.53 Megawatt (MW) as on May, 2017.The Ministry of Power has set a target of 1,229.4 billion units (BU) of electricity to be generated in the financial year 2017- 18, which is 50 BU's higher than the target for 2016-17. The annual growth rate in renewable energy generation has been estimated to be 27 per cent and 18 per cent for conventional energy. The Government has added 10.2 Giga Watts (GW) of conventional energy generation capacity The total solar power capacity addition from new installations in India in the first half of 2017 reached 4,765 MW and has exceeded the total capacity addition done in 2016*.Two under-construction hydro projects of NHPC in Himachal Pradesh and Jammu & Kashmir (J&K), expected to be commissioned in 2018, will produce 4,458.69 million units of additional power, according to the Minishy of Power, Government of lndia. A total of 13,872 villages out of 18,452 un-electrified villages in India have been electrified up to June 30, 2017 as part of the target to electrify all villages by May I, 2018.A total of 26.3 million households which are below poverty line (BPL) have been electrified under the Rural Electrification component of Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY), according to the Mini shy of Power, Government of India. In this study researcher tries to analyze the dividend policies of power companies. These companies are NTPC, NHPC, Tata Power, NLC, Reliance Power, Suzlon Energy. This study tries to find out dividend distribution pattern followed by the companies. The Result shows variety of distribution pattern of the companies, which was changeable in nature. Researcher evaluates 10 years data to analyze a pattern, of dividend distribution.