Power generation to meet 12th Plan target

Private, state thermal producers exceed capacity addition targets; hydro, nuclear power languish

Don't want to miss the best from Business Standard?

Power generation will be 100 per cent of the envisaged capacity addition target of 88,537 megawatt (Mw) by the end of the Twelfth Five-Year Plan.

The sector has missed targets despite them being scaled at times over the previous two Plan periods.

The achievement now is 99.4 per cent and this will likely climb to 100 per cent by March 2017, when the Twelfth Plan ends. This is largely due to capacity increases by private and state thermal power producers, while hydroelectric projects are lagging behind targets.

The enhanced thermal power generation is attributed to improved fuel supply, with coal availability increasing to a historic high and gas supply brought to order through auctions.

During the Tenth Plan period (2002-07), the government had set a target of adding 41,110 Mw. The actual capacity added was 20,950 Mw, 49 per cent of the target. The position worsened during the Eleventh Plan period (2007-2011). The original target of 78,577 Mw was revised to 62,000 Mw, and the actual capacity addition was 50,000 Mw.

The draft Twelfth Five-Year Plan had set a target of adding 100,000 Mw of capacity, but the Planning Commission scaled it down to 88,537 Mw.

There has been no hydroelectric capacity addition in the past five years. Private and state thermal power producers have surpassed targets by 112 per cent and 129 per cent, respectively.

“The private sector has become active. As India goes about implementing its growth plan, the role of private players will be the differentiator,” said Ratul Puri, chairman, Hindustan Power Projects.

Central government power companies have met 62 per cent of their targets. Hydroelectric and nuclear power capacity has lagged, but NTPC — the country’s largest power generating company — claims to be close to its target.

“With capacity addition of 9,800 Mw during the current Plan till date, NTPC is all geared up to achieve the target of 11,920 Mw for the Twelfth Plan, ending 2016-17,” an NTPC executive said. The company’s annual report said it planned to add 4,500 Mw in 2016-17.

NTPC had added 9,610 Mw in the Eleventh Plan, surpassing its target of 9,220 Mw, the executive added.

After the Twelfth Plan ends in 2017, the power sector is looking at an empty capital investment pipeline, as no big generation project is in sight.