Sterlite Power is a leading global developer of power transmission infrastructure with projects of over 10,000 ckm and 15,000 MVA in India and Brazil. With an industry-leading portfolio of power conductors, EHV cables and OPGW, Sterlite Power also offers solutions for upgrading, uprating and strengthening existing networks. T&D India met up with Manish Agarwal, CEO-Solutions Business, Sterlite Power Transmission Ltd, during Elecrama 2018 to understand what makes Sterlite Power the finest company today in the field of power transmission.
Sterlite Power is the world’s largest manufacturer of power conductors. Can you take us through the technological advancements over the past few years?
Yes, Sterlite Power is the global leaders in the power conductor business. Around 5-6 years ago, we started making high-performance conductors. We started with high-temperature low-sag conductors. We today have all conductor technologies, most importantly ACCC, VAR, ACSS, GAP, Al-59, etc. All these leading technologies are available with us today. Sterlite Power is also the largest exporter of high-performance conductors.
We started talking to utilities and there we saw the need for high-performance conductors. We saw “choked” transmission lines that needed more than just conventional technology. When you are uprating a power transmission corridor, you need to increase the ampacity and lower the losses. That’s the need we saw, and that is how we started.
Another important thing that we realized that power utilities wanted complete solutions, and not just high-performance conductors. That is how we made a beginning in the “end-to-end solutions” space; this business is now called “master system integrator” business. Here we do turnkey jobs of upgrade and uprate for utilities. We have been leading this segment, having done many projects across different states.
Outside India, as of now, it is only supplies. But we are looking at possibilities of doing upgrade-uprate turnkey projects outside India as well.
How is you collaboration with CTC Global shaping up?
Going back 5-6 years, Sterlite took the lead and brought CTC Global’s ACCC technology to India. It was very difficult initially to convince utilities to go in for this technology because it came at a price! But we have largely succeeded and now it is the most dominant technology, not just in India but also globally. This technology (ACCC conductor) is really doing well! Though CTC Global, since the last 2-3 years has another stringing partner, we have remained their biggest and most strategic partner for ACCC technology in India.
Power utilities are in bad financial health. How difficult is it to sell new technology solutions to them?
As I said, when we started it was very difficult because high-performance conductors could be 4-5 times more expensive than standard (ACSR) ones. We had to do extensive cost-benefit analysis, and that helped us in winning utilities over. For example, Delhi Transco, we have done a line for 220kV that was running at 600 amps. Today, it running at 1,200 amp, with the same corridor. Though the capex might look high, I can get the return on investment in 3-4 years. There was high resistance initially by some utilities but as utilities started experiencing the benefits, there was acceptance. Now, it is utilities that call us instead of the other way around. It is a very positive change!
I am not directly involved in the TBCB power transmission but yes, Sterlite Power is the largest company in this field. In a TBCB project, or for that matter any project that we have undertaken, we have brought in the latest technology. All our projects are running on time or before time. We take prestige in having completed projects that could typically take 4-5 years, in just 18-24 months.
The only matter of concern now is that India does not have much of project work in the TBCB regime. That is where we are working with the government to ensure that investment comes in power T&D as well, and not just in generation.
Another interesting thing that we have done is winning power transmission concessions outside India. We have acquired concessions in Brazil, which makes Sterlite Power the first company to win such a project in Brazil. We continue to invest in talent and technology, to build on these projects.
Do you have any plans of entering the power distribution space?
We are not so much focused in the power distribution space because there is so much in power transmission already – both in overhead and underground projects. We have cables up to 220kV and we are doing turnkey projects end-to-end. When we talk of Smart Cities, we do have power distribution solutions, but currently we are largely focused on power transmission. However, as the opportunity grows in power distribution, and there is a correction in terms of the health of power distribution utilities, we may plan to do more.
Do you see application of high-efficiency solutions in the power distribution field?
In power distribution also, we see ACCC conductor or HTLS conductor, that has so much to contribute at lower voltages of say 33kV. There is much congestion and technical losses. This is where we have solutions, both overhead and underground. There is currently a financial crunch in the power distribution sector. However, we look forward to working with utilities on the power distribution side, gradually. In fact, we have recently launched an underground cable with high ampacity, in the 11kV and 33kV range.
EHV cabling is not picking up in India as expected? What is your take?
That is true to some extent. However, if we see the growth rate of HV and EHV cable in India, it is at least 10-12 per cent annually, at the moment. India has started deploying 220kV cables though there are very few projects on the 400kV or the 500kV variety. The good side is that the market is growing. Secondly, local manufacturing capability is being built so there is lesser dependency on imports. While these things are happening, India should leapfrog in terms of EHV cable installations, considering the time, space and capital advantages. India can do much better in terms of building its underground EHV cable network.
Railway electrification appears to be an emerging area. Any plans in this direction?
As I said, we have so much already in front of us in power transmission both in India and abroad. As far as railway electrification is concerned, we have taken up one pilot project. There again, we do have interest but we are more interested and focused in those segments where our customers have some openness to change, in terms of trying new technology, etc. If things are going on conventionally and the customer is unwilling to change, it is something that doesn’t excite us too much. We really want to do something bigger and better for the country in terms of inducting new technology, as we have done in the power transmission space.
As a group, Sterlite Power is completely integrated right from aluminium to owning and development of power transmission lines. What advantage do you derive?
Yes, we associate with the Vedanta Group and we have aluminium. This gives us an edge but we also buy aluminium outside Vedanta. On backward integration, aluminium has been a big advantage.
Going forward, I think we believe more in strategic partnership on various things. We don’t want to get bogged down by backward integration. We want to remain focused on solutions, especially on end-to-end solutions. We want to understand and resolve customer pain areas, and making products and solutions for unmet customer demands. That is more of our focus area, more than just backward integration.
