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India needs investment of over USD 1 trillion for power generation capacity Print E-mail
Written by Anand   
Wednesday, 15 December 2010
New Delhi: Minister of State for Power, Bharatsinh Solanki, speaking at the Round Table Session on Indian Power Markets organized by Confederation of Indian Industry (CII) said that power requirement for 12th Plan is going to be very high and good quality infrastructure is needed to support the power supply from generating stations that are located at remote areas.

"India needs investment of over USD 1 trillion for adding power generation capacity over the next 20 years," he said. He also announced that Government of India has recently constituted 6 joint ventures with private power companies.

Mr. B K Chaturvedi, Member (Energy), Planning Commission, emphasized on encouraging involvement of private sector in power sector development and making the whole process more inclusive. For 12th Plan private sector is expected to contribute 50% in development of capacity addition. He also addressed issues like – high AT&C losses, weak regulatory structuring, implementation bottlenecks regarding Open Access, fuel securing and pricing, and new capacity addition.

Mr. Ashok Lavasa, Additional Secretary, Ministry of Power, said that regulating Power sector is more complex – that’s why it did not see a steady growth as was noticed in other sectors. Major thrust in capacity addition was at the right place.

Mr. Jaidit Singh Brar, Partner, McKinsey & Company, mentioned that after 2017 India would be the only economy that would be securely growing and thus need to grow at fast pace, and requires a 7 fold scale up in rate of capacity addition. Investment of over USD 1 trillion is required for this scale of capacity addition in power generation. He emphasized on creating valuable markets by addressing viability and market risks, accelerate capacity addition, securing fuel supply and improving efficiency. He propounded for integrated approach to address the challenges of market failures.

Mr. Sunil Wadhwa, MD, NDPL, said that for reducing demand and supply gaps there is a need to reduce AT&C losses and implement energy efficiency measures. This calls for pushing distribution reforms further to create a win-win situation for all the stakeholders. Government needs to work on making discoms financially viable and push for reforms in tariff restructuring.

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