Sector Update

White Paper on "Strategy for 11th Plan and Beyond"

An International Conclave on Key Inputs for Accelerated development of Indian Power sector for 11th Plan and beyond was held on 4th & 5th July 2007. It was attended by about 85 industries including BHEL, Dong Fang, L&T, MHI, Ansaldo, Alstom, VA Tech, and Toshiba. 125 nos. of Research Institutions, State Governments, CERC and State Regulatory Commissions, Ministry of Heavy Industry, PSUs and 25 other organizations also participated in the Conclave.

A separate interaction/meeting was taken by Chairperson CEA with the Industry Representatives to better understand the problems and issues being faced by both the Industries and the Utilities in the Power Sector.

The Members of Industries expressed their concerns and views on their experiences as well as lessons learnt for further development of the power sector. They also deliberated on the various critical inputs identified in the Conclave for timely implementation of the projects. During the discussion it emerged that a capacity addition of 78,577 MW is likely during the 11th Plan whereas during the 12th Plan the tentative capacity addition is expected to be 82,2000 MW. It has also been estimated that in the long term the projections of electricity requirement are expected to grow, with the Installed Capacity requirement by 2031-32 being about 7.6 lakh MW and 9.6 lakh MW, with 7% and 8% growth rates respectively. It was emphasized that the power sector was poised for long term capacity addition and the industry should take steps to increase production and project execution capacity to meet the targets. Power Generation Projects to the tune of 50,000 MW are currently under execution and efforts are being made to place letter of awards for more than 25,000 MW capacity by December 2007. This should provide adequate confidence to the industry for taking up investment decision for capacity augmentation. All companies, specially the larger ones in the Power Sector, are required

White Paper on Strategy for 11th Plan Prepared by CEA & CII 5 to gear up and substantially upgrade their production capacities to meet the unprecedented challenges of the growing requirement of the power sector