In a bid to boost the domestic power production, Power Ministry has highlighted that ensuring 24-hour power supply and easing fuel shortages to increase power production should be the top focus of new government. The government should take steps to tap the country's vast hydro power potential, reform the distribution sector and ensure the financial viability of distribution companies, Ministry added. The Ministry further said that the new government should review the cancellation of coal blocks for power projects in advanced stages of implementation, increase domestic production of gas, cap the rise in power tariffs due to a proposed gas price hike and offer financial relief to power generation projects which are stranded because of the unavailability of fuel supplies.
Power Ministry suggested that coal fuel shortages can be mitigated by expeditiously granting environment and forest clearances to coal mines. Acute coal shortages in the country have become primary reason for power deficit as coal-fired plants account for around 68% of India's total installed electricity capacity at 2.45 lakh MW. Capacity addition for thermal plants in the country has slowed down because of staggered domestic coal production which is mainly impacted by delays in land acquisition, environment and forest approvals and concerns over the execution of mining leases by states.
Regarding the hydro projects, the Ministry noted that the sluggish hydro power generation is mainly due to law and order issues in the concerned states, adverse weather and natural calamities and resultant contractual issues. Therefore, to boost the hydro sector, new government should take measures like providing timely environment and forest clearances, providing special financial incentives for hydel plants and improving infrastructure connectivity in states with potential for big hydro power projects. During the 12th Plan period (2012-17), the government has set a capacity addition target of 10,897 MW for hydro power generation of which 1,559 MW has been achieved so far. In the 11th Plan period, 5,544 MW of hydro capacity were added against a target of 15,627 MW.
Power Ministry further recommended that reforms can be introduced in the sector by amending the Electricity Act 2003 to allow power consumers to choose their power suppliers. Ministry suggested the new government that periodic power tariff determination by regulators should be enforced without delay and grid safety and security can be ensured by enhancing penalties for non-compliance of grid discipline.