The current Plan is expected to see the addition of 62,374 MW of power generation capacity and projects for creating a capacity of 66,000 MW are now under implementation, Union Minister of Power Sushil Kumar Shinde said. The private sector was poised to have a majority share of the sector — at least 52 per cent (against 32 per cent) by the next Plan period beginning April 2012, he said.
Addressing the fourth Electricity East Summit here he said that problems over getting timely supplies of equipment for new power plants were expected to get solved with the entry of around seven overseas companies into India.
“Doosan is planning a 100 per cent FDI (foreign direct investment) unit for making boilers and turbines,” he said adding that in future India would be able to export balance of plants.
Mr. Shinde said that while a capacity addition of 15,000 MW was being planned this year, last year a capacity of 9,585 MW was created, which he said was the highest in 60 years. The private sector would account for a higher share in this capacity addition programme. The Minister said that the share had increased to 32 per cent now from less than 10 per cent in the X Plan and was set to be over 52 per cent in the next Plan period.
Central Electricity Regulatory Commission (CERC) Chairman Pramod Deo said that a special tariff was being worked out to encourage the setting up of pumped storage projects which provide valuable peaking power to a system. “There was a need to encourage such projects,” he said. Later elaborating on this point he said that the tariff of such projects should be higher as their capital cost was very high.
The draft regulation was ready and hearings would take place soon after which the final regulation in this regard would be put in place.
West Bengal Power Secretary Moloy De feared that power companies might soon return to their earlier loss-making days if they continue to be deprived of their legitimate tariffs. He indicated that companies were being forced to take high-cost loans from banks to meet their funding needs in the absence of adequate remuneration.
