Gujarat may fall short of power capacity addition target for 2012-13

The Gujarat government may fall short of its target of increasing state's power generation capacity, from both conventional and non-conventional source, for this fiscal. It has further halved its target of power generation capacity addition over the next two financial years.

As on December 31, 2012, the power generation capacity of the state stood at 20,681 megawatt (MW) including 16,808 MW from conventional sources and 3,873 MW from non-conventional sources. While the state had set a target of adding capacity of 3,314 MW in 2012-13, it has been able to achieve only 1,502 MW till December 31, 2012, which is less than half of the target. This was revealed by Gujarat energy minister Saurabh Patel in written reply to a question asked in the state assembly on Monday.

In a written reply to a series of questions related to power generation in the state, Patel said that the state had added 5,406 MW of power generation capacity in the last two years. Out of which 3,494 MW was from conventional sources, while 1,912 MW was from non-conventional sources.

The minister further stated in his written reply that the government had set a target of adding 2,486 MW of capacity in next two financial years that was by the end of 2014-2015. This is almost half of what the state added in 2011-12 and proposes to add in 2012-13, combined. However, Patel was bullish on increasing the power generation in state through non-conventional sources. According to the minister, as on December 31, 2012, wind power generation capacity of the state was 3,009.90 MW, which would see an addition of 500 MW in 2013-14. Giving details of the solar power generation, Patel said that present installed capacity was 824.27 MW. He however did not reveal target for capacity addition in solar power generation. While replying on a question raised by BJP MLA Jetha Solanki with regard to impact of rise in coal freight charges by railway on power generation cost, Patel said,"Because of hike in coal freight charges by railways in 2012-13, till date, there has been additional cost for power generation of 46 paise per unit."

He said that since Gujarat was supplied coal from southern eastern coal field, the power companies in the state had to pay more freight charges compared to those units in Congress ruled states of Maharashtra and Rajasthan who were supplied coal from western coal filed. "If Gujarat gets coal from western coal field it will save us Rs 1,000 crore every year," the minister claimed. He further claimed that in the budget for 2013-14 railways has increased freight further by 5.7 per cent, which would add a burden of Rs . 120 crore for Gujarat units.

Talking about the cost of power generation in the state, Patel said that in 2012-13 till December 31,2012, power generated by Gujarat-based units, government-run and private combined was 70,824 million units, and the cost of generation was Rs 23,148 crore.