P. 1
Power Sector analysis and Project Economics

Power Sector analysis and Project Economics


|Views: 9,765|Likes:
Published by Abhishek Anand
Description of Power Sector of India and analysis of project economics - Abhishek Anand
Description of Power Sector of India and analysis of project economics - Abhishek Anand

More info:

Categories:Types, School Work
Published by: Abhishek Anand on Oct 15, 2008
Copyright:Attribution Non-commercial


Read on Scribd mobile: iPhone, iPad and Android.
download as PDF or read online from Scribd
See more
See less


The following sector wise capacity addition targets have been firmed up for aggregate capacity addition
of 1,07,000 MW by 2012.

All Figures in MW

X Plan

Plan Total

Central Sector
Ministry of Power


23500 46500

Ministry of Coal


1500 1710

Department of Atomic Energy


5160 6380

Ministry of Non Conventional Energy Sources


6625 10680

Total Central Sector


36785 65270

13 | Page

Total State Sector


10600 18900

Total Private Sector


13500 22900

Overall Capacity Addition (approx.)


61000 107000

It is estimated that for building over 1,00,000 MW of additional power capacity and associated
transmission & distribution infrastructure, nearly Rs. 8,00,000 crores of investments would be needed in
the next decade.
The problem of non-availability of escrow capacity with most State utilities has been holding up the
financial closure of most private sector projects. In view of the current policy against giving counter
guarantees and pending fructification of reforms measures, the Ministry has taken steps to set up
alternate payment security mechanism for the investors as an interim resource mobilisation strategy.
The mechanism has been evolved in consultation with leading financial institutions like IDBI, ICICI, SBI
Caps etc. on the basis of a memorandum of agreement/ understanding to be signed with the reforming
States wherein the States agree on milestone based package of reforms like restructuring of SEBs,
setting up of SERCs, reduction in T&D losses, 100% metering, improvement in PLF, energy audit etc.
The policy framework has also been liberalised to encourage domestic/Foreign Direct Investment in
power sector. The measures taken in this regard include allowing Foreign Direct Investments in
generation, transmission, distribution and power trading on the automatic route without any monetary

You're Reading a Free Preview

/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->