India set to miss power capacity addition target
India set to miss power capacity addition target
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.
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.
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