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India misses power generation capacity addition for the second straight year

29 Apr 2015 Evaluate

India has once again missed the power generation capacity addition target in last fiscal, making it the second straight year when the targets were not achieved. The Standing Committee on Energy in its report stated that the electricity generation stood at 15,935 MW (till February 2015), against the target of 17,830 MW in the fiscal 2014-15, similarly, during the 2013-14, 17,825 MW of power was produced against a target of 18,432 MW production. However, the country surpassed the capacity addition target in 2012-13. The target was 17,956.3 MW against which 20,622.8 MW was generated. A lion’s share of 20,121.8 MW was contributed by thermal power plants.

Ministry of Power pointing to the reasons of under achievement the target said the major difficulties faced in the capacity addition programme were delays in land acquisition, poor performance by civil contractors, delays in supplies by BHEL and contractual disputes, while the hydro power projects were delayed due to law and order problems, poor geology, flash floods and difficult terrain, delay in forest clearances, among others.

The Power Ministry has however said that as part of remedial measures, the Central Electricity Authority (CEA) is monitoring power projects through frequent site visits and critical study of monthly progress reports and the Ministry is also conducting periodic review of the issues related to supply of power equipment from BHEL.

The central government is also coordinating with the state governments on the progress of projects in their respective states. The capacity addition target for the 12th plan period (2012-17) is estimated at 88,537 MW comprising 26,182 MW in the central sector, 15,530 MW in the state sector and 46,825 MW in the private sector respectively.

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