News and Events

Business Standard reported in line with the depressed projections of economic growth, the Planning Commission on Wednesday lowered the target for power capacity addition during the 12th Plan period ending March 2017 to 88,000 MW from 100,000 MW set earlier. Also, state power ministers raised concerns over 55 of the 89 thermal power generating units running on low capacity. Every one per cent increase in Gross Domestic Product requires power capacity to grow by 0.9% in India. Power is one of the eight core infrastructure sectors, which have a combined weight of 38% in the Index of Industrial Production. Planning Commission deputy chairman Montek Singh Ahluwalia said that “Now that we are realistically thinking of lowering the 12th plan GDP growth target to 8 to 8.5%, the overall target for power generation capacity is also expected to be brought down.” The meeting noted 55 power plants were currently unable to run on full capacity owing to coal shortage. India currently has 89 thermal power generating units. The deputy chairman also pitched for ramping up coal imports by CIL during the five-year period raising doubts over the state-owned miner Coal India Ltd’s ability to meet the entire domestic requirement alone. He said the commission was in favour of price pooling of the imported coal quantity. The pooling proposal will be mentioned in the 12th Plan document. He also asked states to increase electricity charges and use power subsidy to improve essential services like drinking water, education and health. "This situation can be handled through a combination of tariff increase and serious efforts to reduce Aggregate Technical and Commercial losses."