Sunday, September 12, 2010

MoP sets equipment order deadline for 12th Plan projects

Somebody has bought the Ministry of Power (MoP) a calender, it seems, spurring the previously lethargic ministry to action for countering the historically unimpressive performance of the power sector against capacity addition targets. Accordingly, it has now announced a deadline of March 31, 2012, by when equipment orders for all the projects expected to benefit during the 12th Five-Year Plan period must be placed without fail to be included in the target for the period.

  • While the Planning Commission is yet to set up a Working Group to determine the 12th Plan capacity addition program, preliminary investigations have revealed a lofty figure of 106,470 MW, out of which the thermal sector alone would install a massive 85,000 MW worth of projects, with hydel projects contributing 16,000 MW. 
  • This pronouncement of the MoP is driven by the fact that the 87,000 MW-odd original target set for the ongoing 11th Plan had to be recently pared down to about 62,000 MW, the achievement of even which looks unlikely. 
  • It remains to be seen if this, however, actually translates into action on the ground

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