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Industry Update : Industry Power Senario
The growth of the economy calls for matching rate of growth in infrastructure facilities The Indian Power Sector is a core component of the Indian infrastructure and its expansion is essential for the success of economic liberalization of India. India, which inherited a little more than 1,300 MW at the time of its independence in 1947, today has an installed generating capacity of around 114,000 MW. The growth rate of demand for power in developing countries is generally higher than that of their GDP. In India, the ratio of demand growth to GDP growth was 3.06 in the first Plan and peaked at 5.11 during third plan and came down to 1.65 in the eighties. At present, a ratio of around 1.5 is projected. Therefore, in order to support a rate of growth of GDP of around 7 % per annum, the rate of growth of power supply needs to be over 10 % annually. This is evident from ever increasing power demand of the country’s vibrant economy leading to a widening gap between the supply and demand. The Government of India has an ambitious mission of ‘POWER FOR ALL BY 2012’. This mission would require that our installed generation capacity should be at least 2, 00,000 MW by 2012 from the present level of 1,14,000 MW.

Generation Sector

Table 1

Capacity Addition Programme for 10th Five Year Plan

 

Hydro Thermal Nuclear Cumulative Capacity
Central Sector 8742 12790 1300 22832
State Sector 4481 6676 0 11157
Private Sector 1170 5941 0 7121
Overall 14393 25407 1300 41110


Source: Annual Repport 2002-03 , Ministry Of power

In order to mobilise additional resources for the electricity sector, to help bridge the gap in demand and supply, Government formulated a policy in 1991 to encourage greater investment by private enterprises in the power generation sector. Inspite of encouraging response to this energy policy from domestic and foreign developers, the contribution from the IPPs has just been about 3,500MW.

*Capacity addition achieved during last 6 years

Year
Capacity Addition (MW)
Center
State
Total
1997-98
333.0
2893.50
3226.5
1998-99
991.6
3250.40
4242.0
1999-00
1615.40
2892.10
4507.5
2000-01
659.00
3116.66
3775.66
2001-02
905.0
2210.25
3115.25
2002-03
(upto Feb 2003)
1210.0
1440.30
2650.30


Source Annual Report-Ministry of Power, Govt. of India

Growth of Installed Generating Capacity

By Year Ending
Installed Generating Capacity (MW)
Centre
Nuclear
Thermal
March-1950
559
-
1,152
March-1960
1,530
-
2,343
March-1970
6,134
420
7,592
March-1975
7,529
640
10,153
March-1980
11,384
640
16,857
March-1985
14,460
1,095
27,030
March-1990
18,308
1,565
43,764
March-1995
20,833
2,005
58,113
March-1998
21,891
2,225
64,150.78
March-2000
23,627
1,840
69,474.76
March-2001
25,141.78
2,860
73,628.30