Capacity Addition Programme during the Eleventh Plan | Indian Economy

In this article we will discuss about Capacity Addition Programme during the Eleventh Plan. After reading this article you will learn about: 1. Introduction to Capacity Addition Programme during the Eleventh Plan 2. Development of Hydro Power 3. Capacity Addition Programme in the Power Sector during the Twelfth Plan. 

Introduction to Capacity Addition Programme during the Eleventh Plan:

Considering the growing energy requirement in the country, the Eleventh Plan has undertaken capacity addition programme to meet such growing requirement of power. The National Electricity Policy (NEP) 2005 recognises electricity as a “basic human need” and targets a rise in per capita availability from 631 units to 1,000 units per annum by the end of 2012.

To fulfil the objectives of the NEP, a capacity addition of 78,700 MW has been proposed for the Eleventh Plan. Of this 78,700 MW of envisaged capacity addition during the Eleventh Plan, 19.9 per cent was hydel, 75.8 per cent thermal and the rest nuclear.

Project under execution in various sectors for the Eleventh Plan have made steady progress. Projects having installed capacity of 19,092 MW has already been commissioned as on 31st December, 2009. The power sector is expected to grow at 9.5 per cent per annum.

Table 10.7 shows capacity addition programme of the power sector during the Eleventh Plan.

From Table 10.7 it is observed that during the Eleventh Plan power capacity addition targets of central, State and private sector are fixed at 39,865 MW (50.7%), 27,952 MW (35.5%) and 10,760 MW (13.8%) respectively making the total targets at 78,577 MW for the Eleventh Plan. Out of this total target, the targets for hydro, thermal and Nuclear power stand at 16,553 MW (21.1%), 58,644 MW (74.6%) and 3,380 MW (4.4%) respectively.

Thus the Eleventh Five Year Plan initially envisaged a capacity addition of 78,000 MW, of which about 19.9 per cent capacity was hydro, 75.8 per cent thermal, and the rest nuclear. At the time of the Mid-Term Appraisal (MTA) of the Eleventh Plan, the target was revised to 62,374 MW with the thermal, hydro and nuclear segments contributing 50,757 MW, 8,237 MW, and 3,380 MW respectively.

A capacity addition of 54,964 MW has already been achieved during the Eleventh Plan. Again, the capacity addition during the Twelfth Plan period is estimated at 88,537 MW comprising 26,182 MW in the Central sector, 15,530 MW in the state sector and 46,825 MW in the private sector respectively.

The capacity addition target forth year 2012- 13 was set at 17,956 MW. As against the target, a capacity addition of 9,854 MW has been realised till 31 December, 2012.

Development of Hydro Power:

Under the present threat of exhaustion of non-renewable resources like coal and petroleum oil and also to face the problem of climate change, the Government has decided to develop more hydro projects considering its huge potential available within the country. Forty-six hydro projects with an aggregate capacity of 13,675 MW are under construction in the country.

Main reasons for their slow development include difficult and inaccessible potential sites, difficulties in land acquisition, rehabilitation, environmental and forest-related issues, inter-state issues, geological surprises and contractual issues. Private-sector participation in hydel power projects has been increasing; there are 14 schemes with an installed capacity of 4,383 MW under construction in the private sector.

Private developers have been allotted 129 schemes with an installed capacity 36,123 MW by States which are yet to be taken up for construction. Bulk of the potential which is in the Himalayan region is yet to be tapped.

Out of the 162 projects for which preliminary feasibility reports were prepared under the 50,000 MW Hydro Electric Initiative, 77 (33,951 MW) have been taken up for detailed survey and investigation and preparation of detailed project reports (DPRs)/implementation. So far, DPRs for 21 schemes have been prepared.

Some of the features of the new hydro policy include making available the dispensation for project development allowed for PSUs to the private sector for a period of five years; better relief and rehabilitation packages for affected families; risk mitigation for developers and facilitation of early financial closure.

A Task Force under the Chairmanship of the Minister of Power has been constituted to look into all issues relating to the development of hydro power. Another Task Force constituted to develop the model contract documents for hydro power projects has since been prepared.

Capacity Addition Programme in the Power Sector during the Twelfth Plan:

During the Twelfth Plan, a capacity addition programme has been undertaken with a target of 88,537 MW comprising 26,182 MW in the central sector, 15,530 MW in the state and 46,825 MW in the private sector (excluding capacity addition of 30,000 MW from renewable resources) and all these targets has been fixed by the Planning Commission.

A capacity addition target of 17,956 MW including 2,000 MW of nuclear capacity was fixed for the year 2012-13 against which a capacity addition of 20,622.8 MW was achieved. A capacity addition target of 17,830 MW including a 1,000 MW nuclear capacity has been fixed for the year 2014-15 out of which 11,610:4 MW has been achieved till December 2014.

The Planning Commission has fixed the capacity addition target of 10,897 MW from hydro power projects for the Twelfth Five Year Plan. During 2012-13, a hydro capacity of 501 MW has been added. The target for 2013-14 is 1198 MW.

The cumulative capacity addition as on 31st December, 2014, is 50,058.22 MW, which constitutes 56.5 per cent of the Twelfth Plan target. The individual targets achieved by the central, state and private sectors are 39.2 per cent, 64.5 per cent and 63.6 per cent respectively.