India needs over $250 bn investments in power sector

India needs investments of over $250 billion for development of the power sector in the next three years, says a report.

"Total investment of over $250 billion is required for development of the power system during the 12th plan," Integrated Research and Action for Development said in its report.

This will give an ample opportunity for investors, developers, power equipment manufacturers in developing power projects and associated transmission infrastructure, it said.

During the 12th plan period (2012-17), India plans to add 88,537 Mw capacity, out of which 69,280 MW will come from coal.

The government has planned additional renewable energy capacity addition of around 30,000 MW (5,000 MW wind, 10,000 MW solar and 2,100 small hydro).

Currently, India's installed generation capacity, from all sources of energy, is close to 2,50,000 MW.

"It is estimated that around 25,000 Mw capacity is being sub-optimally utilised because of inadequate availability of domestic coal," the report observed.

It said that the country is likely to suffer a coal shortfall of 200 million tonnes (MT) by the end of the 12th plan period.

"India is facing lot of difficulties in production of domestic coal due to various reasons. The scenario is likely to remain the same till the end of the 12th plan," it added.

Due to higher share of coal-based power generation, which has a high environmental impact owing to greenhouse gas emissions, India is emphasising on clean energy development, which includes the use of hydro, solar, biomass and so on.