What do you do if your ambitious five-year power generation plan falls short by a whopping 50%? Just double it, seems to be the approach of the Indian government.
In what is one of the most ambitious stretch targets, the power ministry is now considering how to add 82,200 megawatts (MW) of power generation capacity in the 2012-17 period, which coincides with the 12th Five-Year Plan (FYP).
That is just about double of the 41,110 MW target it had set for itself in the 10th FYP, in which the government had managed to only achieve about half its target.
The new thinking is quite ambitious, considering that the government has already set itself a target of 67,000 MW in the coming five years as part of the 11th FYP, which starts this April. India has a present power generation capacity of 1.28 lakh MW. “This capacity addition has been recommended based on a gross domestic product (GDP) growth rate of 9%, with an elasticity of 0.8%,” said a power ministry official.
In a report prepared by the ministry, different GDP growth rate scenarios have been taken into account for planning the additional capacity. For example, to achieve a GDP growth rate of 10% with 0.8% elasticity, capacity addition required will be around 92,800 MW.
It is estimated that to add 82,200 MW in the 12th Plan, it will require an investment of Rs12.34 lakh crore. This is 20% more than the Rs10,31,600 crore required for capacity addition in the next Plan.