India needs to generate more electricity to meet the increasing demands of a burgeoning middle class and industrial base.The country has failed to attract sufficient capital investment, either domestically or internationally, to finance additional generating capacity despite economic reforms introduced in 1991.
In 2003-2004, India experienced a 7.1% electrical energy shortage. Peak shortage spiked at 11.2% approximately.
Indian power plants had a maximum generating capacity of 112,058 MW as of March 31, 2004. During the next decade, India is expected to need an additional 100,000 MW, nearly double it’s 2004 capacity.
The Power Sector in India, a 9-page report by PSi, Inc. analyzes trends among Indian power-sector funds including regulatory issues affecting investment growth. It also examines the power industry’s structure as well as the gap between supply and demand in the years ahead.
Despite the economic reforms introduced in 1991, India’s power industry has not been able to attract enough private investment from domestic and foreign companies to reach an adequate level of electricity supply. In 2003-2004, India had an energy shortage of 7.1% and a peaking shortage of about 11.2%.
While India’s installed power generation capacity was 112,058 MW as of March 31, 2004, the country still needs an additional 100,000 MW to meet the growing demand for electricity over the next 8-10 years. According to industry estimates, domestic and foreign private companies will need to invest a total of about $100 billion in power projects to bridge this deficit.
History:
Power development is the key to the economic development. The power Sector has been receiving adequate priority ever since the process of planned development began in 1950. The Power Sector has been getting 18-20% of the total Public Sector outlay in initial plan periods. Remarkable growth and progress have led to extensive use of electricity in all the sectors of economy in the successive five years plans. Over the years (since 1950) the installed capacity of Power Plants (Utilities) has increased to 89090 MW (31.3.98) from meagre 1713 MW in 1950, registering a 52d fold increase in 48 years. Similarly, the electricity generation increased from about 5.1 billion units to 420 Billion units – 82 fold increase. The per capita consumption of electricity in the country also increased from 15 kWh in 1950 to about 338 kWh in 1997-98, which is about 23 times. In the field of Rural Electrification and pump set energisation, country has made a tremendous progress. About 85% of the villages have been electrified except far-flung areas in North Eastern states, where it is difficult to extend the grid supply.
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