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India may miss power capacity addition target in 11th Plan

India may yet again miss power capacity addition target for a Plan period as the country is likely to add around 55,000 MW of generation capacity against the targetted 62,000 MW in the 11th Five-Year Plan (2007-12).

business Updated: Jun 22, 2010 13:48 IST

India may yet again miss power capacity addition target for a Plan period as the country is likely to add around 55,000 MW of generation capacity against the targetted 62,000 MW in the 11th Five-Year Plan (2007-12).

"It is unlikely that we can add 62,000 MW during the 11th Plan period (2007-12), we can only achieve up to 55,000 MW," a power ministry official said.

This is mainly due to cancellation of some coal blocks for power projects on environmental grounds, he said, adding delay in equipment supply is also another issue which would hamper generation capacity addition target of the country.

In the 10th Plan period (2002-07), the government had envisaged an additional power capacity of 41,110 MW. It ended the Plan with a capacity addition of only 20,950 MW, 49 per cent short of the target. The government had cited delays in technology alliances, lack of funds and natural calamities such as floods as reasons.

"About 42-43 coal blocks allotted to private power companies have been cancelled by the Environment Ministry. This would result in delay and therefore meeting this Plan period's (2007-12) target," the official said. The Ministry of Environment and Forests has cancelled about 43 coal blocks allotted to companies as they were part of the green belt.

Power Ministry Sushilkumar Shinde has, however, maintained that around 74,000 MW of generation capacity can be added during the current Plan period.

"With best efforts, we would add about 12,000-13,000 MW power generation capacity over the likely addition of 62,000 MW in the current Five-Year Plan. This would be at 74,000 MW near to the original target of electricity generation capacity of 78,577 MW," he had earlier said.

The Planning Commission, in its mid-term review, had reduced power generation capacity addition target by over 20 per cent to 62,374 MW for the current Plan from the original 78,577 MW.

"It is anticipated that additional power generation capacity of 45,234 MW can be commissioned during the remaining period of the 11th Plan, noting that 19,207 MW capacity was added till 31 December 2009," Plan panel said in its review.

The present installed power generation capacity of India is over 1,55,000 MW.