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Govt admits to delay in power projects
Press Trust of India / New Delhi Jun 23, 2010, 19:45 IST

Admitting that some power projects were getting delayed due to various issues, the government has said that it may not be able to meet the 11th Plan capacity addition target of 62,374 Mw.

The reasons for the delay include difficulties in acquiring equipment, besides environment and forest clearances.

It is estimated that during the current five-year Plan period (2007-12), the country will add just around 55,000 Mw of generation capacity against the targetted 62,374 Mw.

"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.

"We are pursuing the matter with the ministry of Environment and Forests, Home and Railways. As far as equipment is concerned, BHEL is also trying to expedite the process. It is not possible to do things in months," Bharatsinh Solanki, Minister of State for Power, told reporters, when asked to comment on projects being delayed due to various issues.

"Land acquisition, water and fuel are some of the concerns. We want coal but we also want to save the environment. Both the ministries are working together (on this)," he said.

The delay was mainly due to cancellation of some coal blocks for power projects on environmental grounds, and hurdles in acquiring equipment.

The Planning Commission, in a mid-term review brought out in March this year, had scaled down the power generation capacity addition target by over 20 per cent to 62,374 Mw for the current Plan from the original 78,577 Mw.

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 the reasons.

About 42-43 coal blocks allotted to the private power companies had been cancelled by the Environment Ministry as they were part of the green belt.

Union Power Minister Sushilkumar Shinde, however, maintained that around 74,000 Mw of generation capacity can still be added during the current Plan period.

"It is anticipated that an 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," the Plan panel had said in its mid-term review of the 11th Plan in March.

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

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