India will be able to add around 100,000 MW of power generation capacity in the next Plan, says Power Minister

The government plans to add 30% more power generation capacity during the 12th Plan (2012-17) with tighter monitoring of thermal power projects and participation from private sector players.“We will be able to add around 100,000mw of power generation capacity in the next Plan as against the target of 78,000mw in 11th (ongoing) Plan,” Union minister of power Sushil Kumar Shinde said at an event organised by the Dainik Bhaskar group.

The government has so far added 34,000mw of power generation capacity in the first four years of the 11th Plan. Another 20,000mw is likely to come up over the remaining period of the Plan.Also, private sector players like Jindal Power, Lanco and Monnet Ispat are adding captive power capacity of around 15,000mw in the current Plan.

India has a power generation capacity of 153,000mw and has set a target of adding 78,000mw by 2012.“For the next Plan, we have started construction on 65,000mw capacity already to ensure that we will be able to meet our ambitious target without any difficulty,” the minister said.On the issue of environment clearance for the power projects, Shinde expressed concern as a lot of hydro power projects had to be either delayed or cancelled for lack of clearance from the ministry of environment and forests (MoEF).Shinde also touched upon NTPC’s 600mw Loharinag Pala project, which “had to be called off due to religious issues despite getting all the environment clearances.”

NTPC had spent around Rs650 crore on the project before it was called off by a group of ministers.The power ministry has written to the Cabinet seeking a refund of the investments to the PSU.Environment clearance has emerged as a major hurdle for a number of upcoming power projects in the country, posing a challenge to achievement of the 12th Plan target.The power ministry is trying to convince MoEF for clearing two of its ultra mega power projects in Chhattisgarh and Orissa.Shinde also spoke on the increased competition in the power equipment sector due to setting up of new joint venture companies.