Steps to meet power shortage

The working group on power for the eleventh plan (2007-12) has estimated a total fund requirement of about Rs. 1,031,600 crore for the power sector as a whole.

For creation of projected capacity addition, fund requirement has been assessed at about Rs. 4,10,900 crores by the working group on power. Out of the now proposed capacity addition of about 78500 MW, 1870 MW has already been commissioned and another 50,975 MW is under construction.

Power Finance Corporation and Rural Electrification Corporation have geared up to mobilize funds to ensure that viable projects do not suffer for want of funds. Further, to facilitate financial closure for private sector projects, an inter institutional group, comprising leading financial institutions and banks, is functional.

However, for equity contribution for private sector projects, the developers have to make arrangements from their internal resources, while for meeting the equity requirements in respect of central and state sector projects, public sector undertaking/utilities have to make arrangements from their internal resources and /or budgetary support.

With the projected capacity in place and through energy conservation measures, the gap between demand and supply of electricity is likely to be bridged gradually during the course of the 11th Plan.

This information was given by the power minister Sushilkumar Shinde in a written reply to a question in the Rajya Sabha today.