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Centre drafts power scheme for 11th Plan

Renni Abraham

The Union power ministry has chalked out a programme to install 100,000-mw generation capacity in the country by the end of the 11th Plan, entailing an investment of Rs 8000 billion.

The Centre hopes to invite private participation in this regard by way of capacity addition during 2002-12 at around 40,000 mw. Currently, around 16,500 projects are in different stages of execution and are scheduled for completion during the 10th Plan.

Their progress is being closely monitored by the power ministry. In addition, there are 41,500 mw Central Electricity Authority-approved projects. Power projects of 58,000-mw capacity have been identified for the 10th and 11th Plans for completion.

A Union power ministry source said, "The power plan, which seeks to double the existing capacity of 100,000 mw in order to ensure 'power to all' by 2012, is based on projections of demand made in the 16th Electric Power Survey conducted by the CEA." The official said, "This will not only take care of the existing demand-supply gap, but will also supply the power required for the enhanced of the economy being envisaged from the next Plan."

He added, "Though the average growth in capacity addition on an annualised basis during the decade has been around 4.4 per cent, the electricity generation growth on an annualised basis during the same period has been around 7 per cent. This has been achieved through steady improvement in the average all India plant load factor (PLF) from 53.8 per cent in 1990-91 to 67.3 per cent in 1999-2000 and 69 per cent in 2000-01. Consequently electricity generation has risen from 264 billion units during 1990-91 to 500 billion units during 2000-2001. This momentum is being maintained by fixing the generation target for 2001-02 at 530 billion units."

Since 1991, when the Electricity (Supply) Act, 1948, was amended to promote private investment in generation, 26 projects involving a total capacity of 5,000 mw have been commissioned and another 20 projects with a total capacity of around 6,000 mw are under various stages of construction.

In all, 57 private projects with a total capacity of around 29,500 mw have been given techno-economic clearance from the CEA. Considering the magnitude of the task and the level of investment required, large scale private investment would be required to meet the goal of doubling the present installed capacity of 1,00,000 mw by 2012.

Progress is being closely monitored by the multi-disciplinary task force headed by the power secretary, while their "last mile" problems are being looked into by the crisis resolution group headed by power minister Suresh Prabhu.

However, the key to active participation of private sector in power sector development in the long-term lies in distribution reforms. Under the new reforms package initiated by Prabhu, the electricity boards are being made to follow proper accounting procedures and rationalise tariffs structures drastically.

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