New Delhi: India will miss its target of installing electricity generation capacity of 78,577MW by 2012 as several projects are yet to achieve financial closure, said Kirit Parikh, member, energy, Planning Commission.
“I could say 40,000MW is certainly achievable, 60,000MW is a possible target (but) 77,000MW looks a bit difficult,” Parikh said on Monday.
Power minister Sushil Kumar Shinde had recently told Mint: “During the eighth, ninth and the tenth Plan periods 56,000 MW was added. But in this 11th plan, 92,000 MW is coming (including captive). This has never happened in the history of this country.” Mint had reported on 28 August 2007 that the government was expected to miss its 11th Plan (2007-2012) target of 78,577MW by around 60% because of shortage of equipment and clearance delays, among other reasons.
Difficulties ahead: An NTPC power plant in New Delhi. Ramesh Pathania / Mint
In the 10th Plan period (2002-07), the government had envisaged an additional power capacity of 41,110MW. It ended the Plan with a capacity addition of only 20,950MW, 49% short of the estimate. The government cited delays in technology alliances, lack of funds and natural calamities such as floods as reasons.
“If we are not able to achieve the target, it will be a big setback to the economy,” said Hitul Gutka, an analyst at India Infoline Ltd, had earlier said.
The downturn in the global economy is expected to hit the energy sector further as private developers struggle to raise funds. According to the power ministry, the government expects to face a Rs4.51 trillion funding shortfall in adding generating capacity during the 11th Plan.