Power capacity addition target fell short by 56 percent in last financial year

Submitted by Gagandeep Singh... on Sat, 11/04/2009 - 10:30am

Punjab Newsline
Power capacity addition target fell short by 56 percent in last financial year
V.K.GUPTA
Friday, 10 April 2009
NEW DELHI: Fresh power capacity addition has fallen short of target by 56 percent f in the financial year 2008-09, because of the delay in supply of critical components in thermal projects and non-availability of fuel.

According to the latest data given by the Central Electricity Authority, only 4,900 MW of the targeted addition of about 11,061 MW was achieved in the last financial year ended on March 31, 2009. While the capacity addition during the past two years has been blatantly unsatisfactory, chances are that more such this trend may not be reversed soon. Power capacity installations in the first two years of the 11th Plan period have been only a fifth of the targeted 78,700 MW. Only 12467 MW, which was supposed to have been achieved in the first year of the plan, has been commissioned in these two fiscals.

CEA has re-assessed its predictions for the capacity addition during the 11th Plan period. According to the new estimates, 9596 MW of capacity is unlikely to be commissioned, while projects worth 9337 MW could be possible with extra efforts. Of the capacity moved to the critically unfeasible list, 7406 MW belongs to the central sector, while state and private sector would be responsible for 2960 MW and 1860 MW, respectively.

According to CEA, thermal capacity worth 4866 MW is being considered unfeasible while another 7555 MW has been termed as critical. Apart from thermal power projects, a number of Hydel projects have also been considered to be nearly impossible to commission during the 11th Plan period. Nearly 4630 MW of hydro-based generation capacity is being feared to be unachievable during the current plan period for various reasons ranging from delay in procurement of equipment to non-award of the critical packages.

Unavailability of critical equipments required for the testing of main equipments alone has caused slippage of around 4,000 MW in the year. BHEL the supplier of main equipments has not done enough to pursue with f its vendors to ensure supply of these equipments, CEA observed.

The power ministry has pointed out lack of availability of fuel as a reason for keeping on hold commissioning of some power plants.