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  3. Eighty percent hydro power projects in private sector behind schedule: ASSOCHAM

Eighty percent hydro power projects in private sector behind schedule: ASSOCHAM

07 Sep 2012 Evaluate

Industry body, Associated Chambers of Commerce (ASSOCHAM) pointing the frail power condition of the country has said that nearly 80 per cent of the coal-based power projects in the private sector are far behind the schedule of commissioning. It has specifically said that barring some projects undertaken by the renowned industrial houses including the Tatas, Reliance Power, O P Jindal and India Bulls, most other projects are running behind schedule.

In its study ASSOCHAM has also said that the rest of 20 per cent, which are on schedule so far, too are threatened with delay if various issues relating to policy framework and uncertainty over coal linkages continue to prevail.

The industry body’s data showed that out of the total capacity addition to be achieved by the private sector projects, only about 7,000 mega watt (MW) could be commissioned on time , i.e. by the end of this year and next year, while there could be long delays for the rest of about 44,000 MW planned in the 11th Plan. The country's coal demand in 2011-12 was 640 million tonnes against local production of 540 million, while import was at 90 million tonnes. The study also pointed out that power sector including both the generation and distribution segments, continues to operate under several inefficiencies, which are low level of the plant load factor and high level of transmission and distribution losses.

The study is more disturbing as India is already power deficit, even the government has noted that power deficit which was 8.5% in 2011-12 is one of the obstacles in the process of economic development and limits the ability of the economy to grow. Against the electricity requirement of 936,568 million units (MU) in the country during 2011-12 the availability was 857,239 MU resulting in deficit of 79,329 MU.

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