Power sector ties up Rs 2,24,000 cr

The power sector has tied up Rs 2,24,000 crore worth of investments to build power plants with 70,000 Mw aggregate capacity in the next three years at a time the global economy is reeling under liquidity crunch, according to Power Minister Sushil Kumar Shinde.

Shinde told Business Standard that the country had added 12,000 Mw capacity at an investment of Rs 48,000 crore in the 11th Five-Year Plan (2007-12) so far and tied up funds to complete the projects under execution.

“Theoretically, the impact of the downturn will reflect on all sectors. Since the power generation business is booming in the country, we manage to get funds for fresh projects. About 70,000 Mw is under execution now, which will help us achieve the targetted 90,000 Mw capacity addition under the five-year Plan,” Shinde said.

However, Ernst & Young (E&Y), in its January report, said the investment in the power sector, including generation, transmission and distribution, would be half the earlier estimate of $200 billion (approximately Rs 9,83,026 crore). “The government is expected to curtail its investment in the power sector due to the global financial crisis. The investment during the 11th Plan period is now expected to be $100 billion (about Rs 4,91,304 crore),” the report said.