Mirrored: 17th of January 2012, 04:51 Original: infrawindow.com Views: 72 Settings: Loading the mirror...
logo Jan 17,2012 Is power powerless Is power powerless After targeting to spend around $500 billion in the 11th five-year plan, the 12th five-year plan (2012-17) envisages an investment of about $1 trillion in the development of India*s physical infrastructure to sustain the growing demand. The power sector in India tops the list of priorities in this spending. The sector will get close to one-third of the outlay, same like in the 11th five-year plan. And a majority of the money is expected from the private sector (the exact proportion is yet to be determined). According to official estimates, during the next 5 years, an additional capacity of nearly 78,000 mw will be set up for a sustainable GDP growth of around 8%. For this, experts believe that the power sector has to grow at 1.8 - 2 times the GDP growth rate, implying an additional requirement of at least 18,000 - 20,000 mw every year. Can this miracle happen? Currently, the power sector has been lingering in terms of capacity addition. While only 47% of the planned generation capacity was realised in the hydro-electric segment, 60% of the target was achieved in the thermal segment, and only 18% in the nuclear segment. The hydel projects in India and the nuclear segment were facing some major concerns. Several hydro electric projects have had to re-evaluate their environmental repercussions, while the tsunami-hit Fukushima nuclear power plant in Japan has raised serious safety issues regarding nuclear power generation, globally. On the thermal front, frost prevails. Adequate coal supply remains a cause of worry for many developers. Financial institutions with greater exposure to this sector are revisiting their plans. The banks know where the problems lie and are rightfully being extra cautious. While imported coal prices are going through the roof at the exchange rate, domestic supply remains inadequate. Coal companies too are feeling the heat as the two ministries, coal and power, are crossing sword over who is causing the damage * environment department or the railways, we say all. Contact Us At : info@infrawindow.com