Chennai, Jun 10 (IANS): Diesel engine-maker Wartsila India Ltd. will focus on power utilities as a strategy to increase the demand for its gensets, a top company official said Thursday.

Speaking to reporters here, Managing Director Rakesh Sarin said: "We will be focusing on the power utilities this year. We will propagate the message of smart power generation - having a optimal mix of energy sources."

According to him, the nation should have a mix of power units using different fuels - coal, gas, renewable (solar and wind) and diesel.

He said the government should have a separate peak power tariff policy so that there will be power plants catering to the peak power demand in the country.

Sarin said the current tariff policy caters only to the power utilities that cater to the base load demand which in turn prevents those wanting to put up power plants to meet the peaking demand.

According to him, there was coal shortage to the extent of around 20 percent and the availability of natural gas from the KG Basin in Andhra Pradesh at constant levels was uncertain given the fall in gas production there.

He said power utilities could look at having power generating stations with diesel engines to meet the peak demand.

He said there could be small power plants at various demand centres.