ARS follows a well-thought-out strategy, aiming to achieve the following:
- Supply the most reliable power at a fair market price.
- Maximise shareholder’s value with balanced risk.
- Output-oriented performance improvement for plants.
- Complete projects within the decided time schedule.
- Develop multi-fuel power plants that use least-cost fuel.
- Maintain an open, transparent and trustworthy relationship with shareholders, and environment-friendly logistics.
- Evaluate and work with long-term technical, consulting and financing partners.
- Ensure 100% compliance with environment norms.
- Help the local community advance economically.
- Sign medium to long-term contracts in order to de-risk its portfolio of assets.
- Ensure timely availability of funds for timely completion of projects.
- Strive to be a Power Generation Company which has a long-term focus on the Indian Energy sector.
Benefits for ARS
- The power tariff has surged @ 10% CAGR in the last 5 years, resulting in a better financial state for Power Distribution companies in India.
- Provision of highly-subsidised power for residential and agricultural use has proved beneficial. Industrial and commercial tariffs have gone up drastically, resulting in good opportunities for selling power directly to industries under the Group Captive Agreement.
- With inter-state transmission charges increasing every year, and captive coal mines expected to bid only under a fair process of competitive bidding, imported coal-based power plants in India are expected to remain viable in the long run.
- More than 60% of the power produced in Southern India is from State Electricity companies, and remains highly inefficient. This contributes to the competition between private power producers in the market, making the possibility of intense competition in the long run, less.