Private sector continues to outrun Govt in adding capacity, growth in power generation

Even as India marches towards being a power surplus country for the first time in its history, it is the private sector that is leading the charge.

Piyush Goyal, Minister of State (Independent Charge), Power, Coal, New & Renewable Energy and Mines in a written reply to Lok Sabha said, “The electricity generation in the country increased to 391,163.27 Million Units (MUs) during the year 2016-17 (April, 2016 to July, 2016) from 365,146.09 MUs during 2015-16 (April, 2015 to July, 2015), thus registering a growth of 7.13%.”

A look at the data provided by the minister shows that the private sector has increased power production by nearly 15% while increase in power generation in public sector has increased by less than 4%.

Goyal said that the cost of power billed to power utilities has come down on the back of rationalisation of freight charges for domestic coal and reduction in imports. He said, “As per information received from NTPC Ltd., the cost of power as billed to the power utilities from its thermal power stations for the current year 2016-17 (April, 2016 to June, 2016) has reduced to Rs.3.04 per kWh from Rs.3.19 per kWh during the corresponding period last year i.e. 2015-16 (April, 2015 to June, 2015).”

Goyal said, “Generation capacity addition has been planned to meet the rising demand of electricity in the country. Generation capacity addition target during 12th Five Year Plan (2012-17) is 88,537 MW from conventional sources on All-India basis. In addition, the capacity addition planned from renewable sources is 30,000 MW during 12th Five Year Plan. With this capacity addition, the projected demand for electricity as per 18th (Electric Power Survey) EPS is likely to be met by the terminal year of 12th Five Year Plan.”