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Web Exclusive | April 2013

India may add 62-65 gw power capacity in 5 yrs

Owing to several hurdles in project implementation, India may add only 62-65 gw of power production capacity by the end of 2017 compared to the Planning Commission estimates of 83 gw, CARE Research said in a report.

The research firm cited while thermal power project may be delayed because of lack of sufficient coal supply, hydel projects may be affected by MoEF Clearances and land acquisition hurdles.

By the end of the 12th plan period (2012-17), CARE Research expects coal shortage to reach 143 mn t. Forest or environmental delays coupled with land acquisition problems have mired green field power capacity expansion in the recent past leading to time or cost overruns.

CARE Research expects the coal price pooling mechanism to reduce coal deficit from 152 mn t (without coal pooling) to 70 mn t (after coal pooling) by end of the 12th Plan.

Coal pooling mechanism is blending of expensive imported coal with domestic coal to make imported coal based project tariffs affordable.

The research agency expects base power deficit to decline to 5.4 percent by 2015 from current 8.1 percent on account of faster capacity addition in the first three years of 12th Plan (i.e. 57 gw by 2014-15), domestic coal supply improvement by coal output ramp-up by Coal India and coal pooling mechanism worked out for intermediate period which will be able to bridge coal shortage.

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