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December 26, 2013

Power Sector Yet to Get its Act Together...

 

Power Sector Yet to Get its Act Together...

Like any other year, this calendar year also did not bring any good cheer for the power sector.

Fuel linkages be it coal, gas or other sources were the factors that held back the sector growth. While power plants from AP to Maharashtra stalled production as promised gas linkages from power plants from AP to Maharashtra continued to reel under acute fuel shortage as Reliance Industries’ eastern offshore KG-D6 fields failed to supply required gas because of a sharp drop in gas production from those fields.

With six power plants shutting down in states including AP and Maharashtra, power generation to the tune of 3000 MW was affected as Reliance failed to supply gas.

Similarly thermal power plants that are dependent on coal had minimal coal stocks throughout 2013 with most of them reporting 60-70 per cent plant load factor.

CIL despite interventions from the Prime Minister’s office failed to honour the FSAs made with different power plants. Following PMO intervention 157 of the 173 supply pacts were signed.

As far as generation capacity addition is concerned the overall conventional capacity addition has been about 50 GW against a target of 62 GW in this plan period.

The peak and energy deficits are down to 10.6% and 8.5%, respectively. The country aims to add over 100 GW in the 12th Plan, half of  which is to come from private  sector.

The silver lining however was government inviting bids for two ultra mega power plants, one each in Odisha and Tamil Nadu. To be built at an estimated cost of `25,000 crore each these plants could help ease India’s power deficit problems.

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