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News Brief | January 2011

12th Plan to rely heavily on private sector power projects

The 12th Plan will be favourable for private sector to invest in power projects. According to a strategy plan of power ministry submitted to the Cabinet, private sector will account for 62 per cent of the 75,000 MW capacity slated to come up during the Plan period (2012-17), a big jump from the 20 per cent factored in for the current Plan period ending March 2012.

The total capacity addition during the 12th Five-Year Plan is pegged at 88,000 MW, including 13,000 MW from renewable energy sources. Of the 75,000 MW slated to come up through conventional energy sources (coal, gas and large hydro projects) in the coming Plan period, the private sector is expected to set up 46,500 MW. Utilities in the State and Central sector are expected to account for 20 per cent (15,000 MW) and 18 per cent (13,500 MW) of the capacity addition during Plan period. According to experts, the new regime for the award of power projects from January 2011 would make private players clear favourites.
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