Delhi: The power sector continues to face the same dismal prospects in the
11th 5-year Plan as in the 10th Plan, with a combined shortfall during 2007-12
estimated at Rs4,50,000 crore during, nearly 45 per cent of the total investment
11th Plan capacity addition target has been set at 68,869 MW the centre
would add at least 37,000 MW, states 23,000 MW and private firms around 9,000
Of the 10th
Plan target of 41,000 MW only around 23,000 MW have been added in plan period.
Consequently, the capacity addition required in the 11th Plan would have to be
is estimated that adding fresh generation capacity of over 70,000 MW with creating
and upgrading transmission and distribution systems would require an investment
of Rs10,31,600 crore besides.
according to the report of the working group on power for the 11th 5-year Plan,
the sector would have a shortfall of Rs4,51,607 crore. Moreover, states, which
expect to invest in adding around 24,000 MW in the 11th Plan, would need Rs514,167
debt-equity ratio of 70:30, states need an equity capital of Rs1,54,250 crore,
but have no equity available to fund the expansion.
of Rs3,59,917 crore of the debt component required, the states can manage to arrange
only Rs1,64,973 crore, leaving a gap of close to Rs2,70,000 crore in debt and
equity together, after considering an additional Rs80,000 crore in funding by
special schemes such as APDRP and ''Rajiv Gandhi gramin vidyutikaran
to the economic survey released in February 2007, the various state utilities
suffered a loss of Rs26,150 crore, posting a negative rate of return of 27.43