Adverse weather to inflate project costs in west India
By Utpal Bhaskar
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The cost of building solar and road projects in western India is expected to rise following an increase in the frequency of extreme weather events such as cyclones in the region, said industry experts, analysts and top executives of infrastructure firms.
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While cyclones in the Bay of Bengal have been a regular phenomenon, they are also turning up in western India amid rising temperatures in the Arabian Sea, which experts attribute to climate change.
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India has been incurring losses due to the impact of climate change resulting in extreme weather events, as mentioned in the recent Economic Survey. However, with the clean energy space facing multiple issues relating to low tariff, curtailment in power procurement, delayed payments and tariff-shopping by electricity distribution firms, some believe there are limited options available. “For sure, the weather risks seem to be getting worse. But where is the cushion in prevailing bids for robust construction practices? Most often, developers and contractors are under immense pressure to cut costs," said Vinay Rustagi, managing director at consulting firm Bridge to India.
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