Established in 1947, Jakson Group is a diversified conglomerate with business interests in distributed energy, EPC, solar energy, real estate, hospitality, etc. In this interaction with T&D India, we have Raghav Gupta, Managing Director — EPC Business, Jakson Group, discussing the company’s current strengths and envisioned opportunities in the power T&D-related EPC business. Raghav Gupta is confident that given the government’s focus on a robust and self-reliant power grid, upcoming opportunities in the power T&D space are going to be an integral component of Jakson group’s growth journey.
In the electrical substation space, we understand that GIS substations are gradually replacing AIS substations. What are the advantages of GIS over AIS?
Few fundamental differences are driving the obsolescence of AIS substations:
- Footprint reduction with GIS substation is approximately 35 per cent in comparison to AIS which gives utilities an upside on total cost of ownership given the escalating land prices.
- Reduced weight and smaller switchgear enables GIS substations to be installed in 30 per cent less time as compared to AIS, which dramatically reduces project’s turnaround time.
- O&M effort required for AIS is more intensive as compared to GIS. Primarily due to the thorough inspection routine needed for individual components every year for AIS substation On the other hand, GIS substations need to be only visually inspected every four years given all its elements are fully insulated and can be monitored.
On the other hand, are there any challenges with execution of GIS substation projects?
The major challenge around deployment of GIS substations is the limited number of technology providers for switchgear along with the restricted number of qualified turnkey contractors capable of constructing GIS substations.
Has Jakson Group undertaken underground cabling work? Please discuss some recent projects. Do you feel that underground EHV cabling (220kV or higher) has not picked up in India, as expected?
Jakson has completed over 1,000 km of underground cabling work, at 11kV and 33kV voltage levels, in states of Jharkhand, Uttar Pradesh and Andhra Pradesh.
Adoption of EHV undergrounding cable is slow due to the inherent challenges associated with construction and O&M. RoW (right of way), especially in urban areas is a major impediment for construction. Securing associated clearances required from ancillary government authorities can also be challenging.
Additionally, during operation and maintenance period specialised equipment is needed to detect any faults, which makes the process more expensive and increases downtime.
Currently, few drivers are enabling adoption of underground cabling (UGC) such as disaster management. Areas vulnerable to extreme weather adopt UGC to avoid power cuts. Also, areas with excessively cluttered overhead cabling routes adopt UGC to improve public safety.
The Revamped Distribution Sector Scheme (RDSS) has created big business opportunities for power distribution infrastructure upgrade as well as smart metering. How does Jakson Group plan to capitalize on RDSS?
Objective of Revamped Distribution Sector Scheme (RDSS) is to aid discoms in improving their operational efficiencies and financial sustainability by providing result-linked financial assistance to discoms. The scheme has an outlay of over Rs.3 lakh crore over five years (FY21 to FY26) to strengthen the 11kV/33kV infrastructure along with the associated distribution lines, end goal is to reduce AT&C losses and create a sustainable revenue stream for discoms by deploying prepaid smart meters at customer end.
Jakson Group is a major market shareholder in this domain with order book (as of FY23) of approximately Rs.2,000 crore in states of Uttar Pradesh, Maharashtra, West Bengal and Rajasthan.
Jakson Group qualifies to participate in all three categories of work —armouring of distribution lines, upgradation of 11/33kV transmission infrastructure, and installation of smart meters under HAM (hybrid annuity) model, also called as the TOTEX model.
Broadly speaking, do you cater to government utilities more than private sector players, especially in the core T&D area of substations, transmission lines, cabling, etc?
Given that majority of the power evacuation assets are owned and developed by government utilities our clientele is primarily government institutions.
Does the Jakson Group have plans of entering the international market for EPC contracting in the power T&D space?
Yes, Jakson Group has clear plans to penetrate EMEA and SAARC regions in the near future, extending our core competencies of building transmission and civil infrastructure to foreign government institutions.
Currently over $200 million of power T&D projects in Africa, where Jakson Group has bid, are under evaluation with results awaited.
Given that power T&D has been identified as a thrust area with massive investment outlay, how do you rate the business opportunities for Jakson Group in the years to come?
Opportunities in the power T&D space are going to be an integral component of Jakson group’s growth journey. We are exploring inorganic strategies to enhance our strengths and position ourselves as a global leader in the domain of power infrastructure development. With government’s focus on creating a self-reliant power grid, the pie is going to be big enough to accommodate Jakson Group’s appetite and other market leaders as well.
