Need Rs 11 lakh cr to add 1 lakh MW power capacity in 5 yrs

The power sector would require a whopping investment of about Rs 11 lakh crore in the next five years to achieve the targetted capacity addition of over 100,000 MW, the Economic Survey 2011-12 said.

“In order to achieve the projected capacity addition of 103,300 MW and build commensurate transmission and distribution capacity, investment to the tune of Rs 11.18 lakh crore would be needed,” the survey, which was tabled in Parliament today, said

Meanwhile, the sector is likely to be constrained by shortage of fuel and environmental issues, it said.

Shortage in supply of coal and gas to the power sector has been impacting the output at present. A delay in forest and environmental clearances, in particular for hydro-based power projects, has slowed down capacity addition.

A power generation capacity of 50,000 MW to 52,000 MW is expected to be added during the current Plan period ending March 31, 2012. A capacity addition of 46,669.7 MW has so far been achieved untill January 2012.

At the start of the 11th Five-Year Plan (2007-12), a capacity addition of 78,700 MW was envisaged but was scaled down to 62,374 MW in the mid-term appraisal, with the thermal, hydro and nuclear segments contributing 50,757 MW, 8,237 MW and 3,380 MW respectively.

The country’s total power generation capacity stands at over 1,80,000 MW.


Source: BS



Mechanical engineer with experience in Power Plant maintenance , operation and auditing for ISI marked products. MBA in Power Management from National Power Training Institute, Faridabad. Working as Consultant for Bridge to India Pvt. Ltd. Expertise in: 1) Power sector regulations 2) Financial Modelling 3) Project Development solar PV plants 4) Strategic consulting 5) Report writing

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1 Response

  1. raj says:

    Who is calculating this figures probably it includes the mining development cost a, port development costs , buying ships to convey coals ……..
    The present day cost is 5.5 crores /MW how 11 crores has been indicated is not clear or it would go as bribes and commisions

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