India will need an estimated Rs 500,000 crore investment during the 11th plan (2007-12) in power sector for generation, transmission, distribution and rural electrification works, the Lok Sabha was informed on Wednesday.
The Committee on Financing of Power Sector during 10th and 11th plans has estimated the total fund requirements in 11th plan at Rs 499,818 crore, Power Minister Sushilkumar Shinde said in a written reply.
The government has set a tentative target of adding 62,000 MW generation capacity during the period to reduce energy shortages, he said.
To another query, Shinde said India will participate in the 'FutureGen Project', a public-private initiative of the government of USA. The project is aimed at building and operating the first coal-fired emission-free power plant of 275 MW.
This is a research project spread over 10 years, he said, adding India would contribute 10 million dollars towards the total cost of $950 million.
Replying to a question on whether the Planning Commission found Rajiv Gandhi Grameen Vidyutikaran Yojana economically unviable, Shinde said the scheme was revenue sustainable as it took care of revenue flow by giving the management of rural distribution to franchisees.
On the Dabhol power plant, he said the first block of 740 MW will be ready for generation by May this year and the other two blocks by November.
Maharashtra, in the meanwhile, has been given 100 MW of power to mitigate shortages, he added.
On the Dabhol power plant, he said the first block of 740 MW will be ready for generation by May this year and the other two blocks by November.
Maharashtra, in the meanwhile, has been given 100 MW of power to mitigate shortages, he added.