Powering ahead, finally

As the mercury soars to record new highs this summer, most parts of India reel under a familiar problem—chronic disruptions in electricity supply. Another grim reminder of the magnitude of the power crisis confronting India. This piece of news, though, could offer some solace. Almost 9,600 MW of capacity was added in 2009-10.

While way short of the capacity addition target (66 per cent), it's still the highest achieved in a single year in India. The Central and State sector utilities toted up 5,298 MW, a capacity equivalent to the peak demand met in Gujarat and twice that of Delhi, last year. The power sector pundits estimate that the 11th Five-year Plan (2007-2012) is likely to end with a capacity addition of 62,302 MW—almost three times the capacity added in the 10th Plan period (2002-07).

The reasons for the resurgence? The timely commissioning of a few large power projects, spillover effect of some projects from the last five-year Plan, and the rise of the private sector against heavy odds. At the end of 2011-12, when the 11th Plan ends, the private sector is likely to add 19,000 MW, which is 10 times its achievement during the previous Plan.

The Centre is targeting 1 lakh MW capacity creation during the 12th Plan (2012-17), 60 per cent of which is expected to come from the private sector. But problems remain. It takes five to six years to commission a large power plant in India, while a comparable plant in China takes about three years.

A plethora of clearances and land acquisition problems slow projects in India. The government could cut layers of bureaucracy where feasible and quicken land acquisition and approvals. Now consider this: At about 720 units, India's per capita consumption is less than five per cent of the per capita consumption in the US, and less than 20 per cent than that of China. The global per capita consumption is about 2,340 units. So, clearly, it's a long haul ahead.

High Voltage

• Highest power capacity addition in a single year (9,600 MW) in 60 years
• Addition during 11th Plan likely to be three times that in the 10th Plan
• 80 percent 11th Plan target likely to be met —  another record
• Private sector contribution to increase 10 times in 11th Plan