India has set a target of 46 185 MW of additional power generation capacity by the end of 2007 under its 10th Five-Year Plan as part of its objective of delivering “power on demand” by 2012. The 11th Five-Year Plan will require a further 60 885 MW.

Federal utilities under the Ministry of Power are targeted to add 43 per cent of the required capacity as against 23 per cent in 9th Plan, according to the Blueprint for Power Sector Development produced by the ministry.

Federal utilities, including National Thermal Power Corporation and National Hydroelectric Power Corporation, would add 23 000 MW in 10th Plan and 23 500 MW in 11th Plan, the document said. The total capacity addition in the federal sector would be 28 485 MW in 10th Plan and 36 785 MW in 11th Plan.

In the state sector, 8300 MW would be added in 10th Plan, 10 600 MW during 2007-2012. The private sector meanwhile would add 9400 MW in the 10th Plan and 13 500 in 11th Plan.

According to the Blueprint, all India average shortages during 2001-02 were 7.8 per cent in terms of energy and 13 per cent in terms of peak load. To bridge this shortfall, 100 000 MW of additional power capacity needs to be added by 2012.

In order to meet this shortfall, the Blueprint concludes that an estimated investment of nearly Rs 8000bn ($167bn) would be needed to build the necessary power generation facilities and associated transmission and distribution infrastructure.