The Planning Commission has set a target of adding over 88,000 MW of power generation capacity in the 12th Plan period (2012-17).
In order to bridge the gap between peak demand and peak deficit, and provide for faster retirement of the old energy inefficient plants, the target for the 12th Plan has been fixed at 88,425 MW," said the 12th Plan document.
The Commission had earlier estimated a capacity addition requirement of 75,785 MW in the next five years.
The share of the private sector in the additional capacity will be 52 per cent compared to the target of 19 per cent in the 11th Plan. It is important to build a policy framework within which more private sector investments will be forthcoming in the 12th plan period, the document said.
The 11th Plan aimed at 78,577 MW capacity addition, but achieved only close to 52,000 MW.
The share of renewable power is very low now and it should be increased to promote low carbon growth strategy, the document added.
The projected capacity addition in non-fossil fuel plants includes hydro capacity addition of 11,897 MW and nuclear capacity addition of 5,300 MW.
Importing 1,200 MW of hydro power from Bhutan has also been considered for the next first years.
Adding a grid interactive renewable capacity addition of about 30,000 MW is also planned. It comprises 15,000 MW wind, 10,000 MW solar, 2,100 small hydro and the balance primarily from bio mass planned.
The document said the targeted capacity addition requires strengthening of the transmission network.
The experience of privatisation in Delhi, Colgate, Mumbai, Ahmedabad and Surat shows that transmission and distribution losses can be reduced, network efficiency increased and service levels are improved.
The experiences in Bhiwandi, Maharashtra of franchising have also indicated positive gains with network losses going down from 63 per cent to 19 per cent in Bhiwandi and service levels improving, the report added.
The 12th Plan will have to place a major emphasis on expansion of privatisation in different utilities as a strategy to reduce network losses, improved efficiency of service and consumer satisfaction, it added.