We strongly believe that the visionary reforms undertaken by the government coupledwith robust economic growth and renewed focus on the manufacturing sector as well as thePower for all goal will drive consumption growth over the next few years.
The private sector has contributed greatly to building India's power generation andtransmission capability over the last decade thus energising the nation's economic growthengine and providing access to reliable power supply to a large number of hithertounderserved citizens. The nation is today largely free of the crippling problems of powershortages and unreliable supply which plagued economic growth in the past.
Thermal power generation capacity which stood at 82.4 GW in FY 2006-07 has grownrapidly during the last decade to 218.3 GW. Of this 99 GW has been added during the 12thFive Year Plan outstripping the Plan target of 88 GW installations. Investments made bythe private sector have played a key role in this capacity expansion aided by enablinglegislation. From a mere 9.6 GW which was 12% of the total thermal power capacity in FY2005-06 the private sector accounted for 84.2 GW or 39% of the total thermal powercapacity at the end of FY 2016-17.
On the other hand despite the commendable growth in generation and transmissioncapacity the growth in consumption of electricity has fallen short of projections. Thishas led to a situation nearing oversupply in the electricity market in the near term.Along with this there have been persistent challenges in terms of fuel shortagesnon-availability of long-term PPAs and policy uncertainties that have impacted privatesector investments and created a stress on the banking system.
It is imperative that the government as well as regulatory bodies take concrete stepstowards resolving these challenges by improving coal supply signing fresh PPAs andexpeditiously addressing petitions. The Central Government has already initiated severalreforms in this direction such as addressing the deteriorating financial health ofDISCOMs through the UDAY scheme alleviating the shortage in supply of domestic coal bysetting a target of doubling domestic production to one billion tons by 2020 andannouncing the new linkage policy for power called Scheme to Harness and Allocate Koyla(Coal) transparently in India or SHAKTI. An earnest and time-bound implementation ofthese reforms by States is called for along with due support from the regulatory system.We strongly believe that the visionary reforms undertaken by the government coupled withrobust economic growth and renewed focus on the manufacturing sector as well as the Powerfor All goals will drive consumption growth over the next few years.
As the largest private sector power producer we maintained our emphasis on operationalefficiency and cost control while working relentlessly to solve persistent challenges.During FY 2016-17 we continued to see the impact of the overcapacity situation in theform of reduced demand for short-term contracts low merchant prices and reduced offtakeby some long- term customers. However with a major portion of our capacity tied underlong-term PPAs and our ability to maintain high availability of our plants we have beenable to withstand the vagaries of the market. During FY 2016-17 your Company sold 60.2billion units on a consolidated basis and recorded total revenues of Rs.23203 crores. Ofthis the Standalone business accounted for sales of 27.6 billion units and Rs.11753crores of revenues. Among subsidiaries the Tiroda plant sold 17.3 billion units theKawai plant sold 7.9 billion units and the Udupi plant sold 7.4 billion units. A keychallenge that we have faced especially at the Mundra plant is the unavailability offuel cost pass through for imported coal. This has resulted into an under-recovery ofcosts at the plant. Consequent to the Supreme Court's order regarding CompensatoryTariffs we have engaged in discussions with various stakeholders to identify remedialmeasures for sustainable operations of the Mundra power plant.
The recently-announced SHAKTI policy will allow power plants to source domestic coalreliably. We believe that the performance of our domestic coal-based power plants at Kawaiand Tiroda plants will improve further with an assured supply of fuel. We will continue tofocus on resource management as well as efficient operations of our capacities. We arecommitted to overcome the present challenges and shall work diligently towards this end.In the coming years we foresee a consolidation in the power generation sector even whilenew opportunities open up with economic growth. We are poised to pursue new opportunitiesof profitable growth and will strive to identify the right assets for investment underorganic and inorganic routes.
Our momentous journey over the years has been made possible by highly committed andcapable teams and an empowering and co-operative work culture. We have investedcontinuously in building our organisation identifying leadership capabilities in variousfields and improving skill sets and versatility by offering targeted training programs toour employees. The commitment and resourcefulness of our people is reflected in thefast-paced growth we have achieved by overcoming all challenges and reaching newmilestones continuously.
Your Company has been ranked as among the top 100 workplaces in India in FY 2015-16. Weaim to live up to high standards of employee expectations and improve our standing evenfurther. We have a young work force with an average age of 33 years which gives us anopportunity to spot and nurture talent and to cultivate leaders for our next phase ofgrowth. At the same time ensuring health and safety of our workforce in a fast pacedenvironment is a key priority area. Your Company has engaged DuPont as a partner tosupport our Zero Harm' objective. We have also embarked on a safety culturetransformation journey to achieve excellence in all aspects of safety. As important as allof these achievements is our commitment to the environment and to the communities aroundus. Your Company recognises the relationship between ecosystems biodiversity andbusiness sustainability. We continue to concentrate our efforts in environmentalconservation and minimising the impact of our activities as well as working towardsensuring a bright future for the communities. Climate change concerns are pushing forinnovation and upgradation of technology world over. We are also evaluating efficient800MW and 1000 MW ultra-supercritical technology units for our future expansion plans inorder to help mitigate climate change concerns. Further your Company has also implementedSustainability Reporting with publication of annual Sustainability Reports covering oursocial and environmental performance and using it to build bridges with variousstakeholder communities.
On behalf of the Board and the leadership team at Adani Power I thank theshareholders lenders our employees vendors customers and various regulatory andstatutory bodies for their valuable support in building a strong vibrant and responsibleorganisation.
Chairman Adani Power Limited