Financial Daily from THE HINDU group of publications
Thursday, Jul 29, 2004
Industry & Economy
Govt sure of achieving power generation target
Bangalore , July 28
THE Ministry of Power is confident that the Tenth Plan target of an additional power generation capacity of 41,000 MW will be achieved.
The Secretary to the Ministry of Power, Mr R.V. Shahi, said that 36,000 MW of generation capacity had already been commissioned.
With the remaining 5,000 MW at various stages of implementation, the target will be achieved within the plan period. This is the first time that the plan targets have been on schedule. As a result, he said, the targets for the Eleventh five-year plan were raised to 60,000 MW.
Mr Shahi said that the actual plan target was 65,000 MW.
Mr Shahi said that for the current plan, at least eight projects in the private sector had achieved financial closure.
Another nine projects were expected to reach this milestone by September. These will aggregate to a capacity equivalent of 9,000 MW.
Mr Shahi said the plan is to electrify all villages in the country by 2007, and raise the per capita consumption to 1,000 kilo watt hours (units). Accordingly, the Government's policy aims to create 50,000 MW of hydel capacity and 100,000 MW of thermal capacity by the Thirteenth Five-Year Plan, he said.
Feasibility reports for creating this hydel capacity have started. At least 162 projects in various States have been identified for implementation. The average tariff for these projects was in the range of Rs 2.5 per unit, he said.
Referring to the thermal capacity, he said, the proposal involved setting up of pithead-based projects, coastal stations and revamping existing thermal stations to improve capacity. However, for gas-based projects, Mr Shahi said cost effectiveness would be the criteria. The Ministry's had recommended $3 per mmbtu.
This tariff will result in a power tariff for gas- based projects of around Rs 2 per unit at the point of generation.
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