Thermal power projects with 65,861 Mw total capacity face 13% cost overrun

Cost of projects across the country climbs to Rs 5.07 trillion from Rs 4.46 trillion, following implementaion delay of four to 78 months

Thermal power projects under various stages of construction across the country are facing cost escalation of 13 per cent due to delays in implementation.
 
The total capacity of these projects is pegged at 6,5861.15 megawatt (Mw). The original cost of these projects was estimated at Rs 4.46 trillion, but due to time overruns, the cost has shot up to Rs 5.07 trillion. The time overrun for the projects ranges from four to 78 months.
 
Data by the Central Electricity Authority (CEA) show that in the central sector, 18 projects - predominantly the ones being executed by NTPC - are grappling with a combined time overrun of 519 months. In the private sector, projects proposed by Lanco Power, India Power, KVK Nilachal Power, Ind-Barath Power Infra and others are impacted by cost overruns.

 

Power capacity addition has been on a downtrend after 2015-16 when the country added 1,746.1 Mw. In the last financial year, thermal capacity addition slowed to 13,440.5 Mw.
 
For 2017-18 too, the country is poised to fall short of its target of 13,171.5 Mw. At the end of December 2017, only 4,765 Mw fresh capacity has been added.
 
Annual report of the Union power ministry presents a depressing trend for power capacity addition in this financial year, especially for thermal power. Of the targeted 11,366.15 Mw capacity addition, only 4,300 Mw fresh capacity in thermal power has been created by the end of December. In thermal power, performance of central- and state-owned utilities has been lacklustre. It was proposed to add 4,800 Mw power in the central sector, but actual achievement is only 910 Mw. Likewise, state utilities have added 660 Mw, against the intended capacity of 3,546.15 Mw.

 
Private power producers have fared better, inching close to the assigned target for the financial year. At the end of December 2017, capacity addition in private thermal power was 2,730 Mw, compared to their targeted figure of 2,940 Mw.
 
Nuclear power has drawn a blank as far as capacity addition goes. Through this source, 500 Mw was proposed to be added in FY18. Hydropower capacity addition, too, has been tepid. Only 465 Mw in hydropower capacity has been added vis-à-vis the target of 1,305 Mw.