India's installed power capacity up 37% in last five years

MUMBAI: Strong participation by the private sector coupled with several initiatives by the government has pushed up the installed power generation capacity in the country by around 37 per cent in the last five years, a Power Ministry report said.

By December 2010, total installed power capacity rose to 1,70,469 MW, from 1,23,901 MW in December 2006, the report 'Half a Decade of Powering Progress' said.

The share of the private sector in power capacity has grown from 11.6 per cent in 2006 to 20 per cent in 2010, the report said.

It is estimated that private players would add nearly 30 per cent of the total capacity addition in the 11th Plan and around 60 per cent in the 12th Five Year Plan.

The government estimates that during the current Five Year Plan, the private sector will bring in nearly 19,000 MW, which is 1.7 times the aggregate capacity added in the last 15 years.

According to the Ministry,de-licencing of the generation sector, regulatory and policy framework, open access in transmission, development of electricity markets and procurement of power through competitive bidding process by distribution companies are some of reasons that have led to increase in private participation in the power sector.

The participation by the private sector in augmenting domestic manufacturing capacity of power plant equipment has also helped in accelerating the pace of installed power capacity, it said.

Several companies have formed joint ventures to manufacture supercritical power equipments such as boilers and turbine generators.

Joint venture companies, including Bharat Forge-Alstom, JSW-Toshiba would be setting up plants to manufacture turbine generators. A joint venture between GB Engineering and Ansaldo has been formed to manufacture boilers.

Infrastructure major, L&T has also entered into a joint venture with Japan-based MHI to set up plants to manufacture both boilers and turbine generators.

Korea's Doosan would also be putting up equipment manufacturing facility in India with 100 per cent foreign direct investment.