'More power capacity needed in 12th Plan for 9% growth'

Prime Minister Manmohan Singh’s economic advisory council chairman C Rangarajan today said an additional 100,000 Mw of power capacity was required for the country in the 12th Five-Year Plan to sustain a 9 per cent gross domestic product (GDP) growth.

“There should be a coordinated plan between the power and coal sectors, and issues like environment need to be considered to achieve the target. If we have to sustain the rate of growth at 9 per cent over a five-year period, we must ensure that the additional capacity available in the 12th Plan period,” he said, adding that the recent diesel price hikes could be a medium-term effect on inflation that may ease out after some time.

The government has set a target for 100,000Mw power capacity addition in the 12th Plan, which will begin from April, 2012, while reducing the 11th Plan target to 62,347Mw from over 78,000Mw.