70 per cent below target

The UPA government is leaving office with a dismal record in the power sector. Out of the targeted 11,061 MW capacity addition for 2008-09, only 3,453 MW or 31.2 per cent has been achieved. This is an even poorer performance than the previous year, when it met 56 per cent of the target.

The Government of India had declared that it would create fresh capacity of 78,700 MW in five years ending March 31, 2012, under the 11th Plan. The target was set after deliberations at the highest policy making levels. Three-fourths of the targeted capacity or 59,693 MW was to come from thermal plants.

However, the sector has so far failed to meet 75 per cent of the thermal target set for 2008-09 with the PSU major NTPC Ltd., accounting for a bulk of it.

Says V.Raghuraman, Principal Advisor (Energy), Confederation of Indian Industry (CII): “The lessons learnt so far and the actions already initiated will help the sector achieve better capacity additions in coming years.”

At a CII seminar in March, Power Secretary V.S. Sampath had claimed that the government was in a position to meet annual targets as equipment, construction and engineering capacities had been substantially tied up. The Centre, he said, had taken steps to scale up capacity addition to 20,000 MW a year. According to Sampath, the sector required an investment of Rs 10.5 lakh crore, besides steps to tackle the lack of adequate porting facilities for transportation of fuel.

Few, however, are buying the power ministry’s claims. Surya P. Sethi, Principal Advisor to the Planning Commission, for one, went on record, in January, saying he doubted the sector’s ability to meet the target.

—K.R. Balasubramanyam