To sustain and propel India's economic growth, it is critical to ensure growth in the power sector across various segments, said Minister of State for Power Jyotiraditya Madhavrao Scindia. He was delivering the keynote address at the 'Conference on Power Sector – A Way Forward' organised by the Central Electricity Authority and Confederation of Indian Industry (CII).
The decade growth rate of the Indian economy in the last two decades has been 6.5 per cent, the Minister said. On the generation front, highlighting the need to raise the bar, he said that targets for the twelfth and thirteenth plan are respectively 88 and 93 gigawatts (gw). This will be primarily be driven by the private sector which will account for 55 per cent of these investments by end of the 12th Plan. By 2032, India must have a portfolio of close to 800 gw, he added.
Outlining some of the initiatives that have been taken jointly by the Ministry of power and Ministry of Coal to address the fuel supply issue he said, fuel Supply agreements of close to 66 gw are likely to be signed in the next two-three months.. Also work is in progress to set up an independent coal regulator and implement the process of price pooling through coal imports.
On the distribution front, he emphasised on the need to reduce aggregate technical and commercial (AT&C) losses. He said For the first time in history, there has been a tariff increase across the board with some states raising tariffs by as much as 37 per cent. However, Scindia said that a revision in tariff is not a triumph. It becomes necessary as the AT&C losses are not being reduced.
It is more critical to reduce AT&C losses as the tariff increase will then be gradual. Concluding his address, he reiterated the need for all key stakeholders to work together.