India to miss power generating capacity, says CEA - To achieve only 18,600 MW of power generation capacity in 2011-12

India is lagging behind in achieving power generation capacity target. According to Central Electricity Authority (CEA), the country will achieve only 18,600 MW of power generation capacity in 2011-12 compared to around 20,400 MW in 2010-11.Empowered Group of Ministers (EGoM) expressed concern about a decline in new power generation capacity in a note which has been forwarded to the Planning Commission.The note stated that “under current circumstances, total new capacity by the end of the 11th Five-Year Plan in March 2012 is expected to be 62,000 MW, against the target of 78,700 MW set by the Planning Commission.

The present installed capacity in India is approximately 164,000 MW. The power shortage in the country is hovering around 13 per cent during the evening peak hours between 17:00 hrs and 22:00 hrs.Planning Commission has set a target of additional 100,000 MW of generating capacity in the 12th Five Year Plan starting 2012.Out of this ambitious target half would be delivered by the private sector, compared to 33 per cent currently generated by independent power producers.The CEA has attributed this shortfall in power generation capacity to the shortage of coal, which has emerged as the primary reason for failure to increase generation capacity.CEA feels that due to acute shortage of power-grade and thermal coal in the country will force the coal imports to touch whopping 85 per cent to 85 million tonnes by 2012.

To make the situation worse around 43 coal blocks which were allocated to private power-sector investors have been cancelled by the ministry of forests and environment, citing environment issues as the sites fall into the green zone.The CEA note will also form part of the documents that are going to be presented to the task force, which the government is setting up, to frame corrective measures for persistent slippages in power generation targets.The task force will comprise officials from the ministries of power, finance, industries, environment, and the Planning Commission.