Equipment and coal shortage has pushed Indian power sector miles behind China

India’s power sector continues to remain one of worst performers in country even as the government commits to raise the rate of investment in the infrastructure sector to 9% by 2014. The country has consistently failed to add the planned capacity over the years.

In the fiscal 2007-08 India was able to generate new capacity equal to 77% of the lowered target of 12 Giga Watt (GW), but the achievement in the last fiscal was only 46% of the targetted 7.53 GW.

The state minister for power told Parliament on Monday that in the current fiscal, the achievement will again be below the target. The country is likely to add only 70% of an estimated target of 14.5 GW power capacity generation target with actual achievement expected to be little over 10 GW.

Explaining the reason for poor performance of India’s power sector, he said that short supply of electricity equipment was a major hurdle and coal supply problems were also responsible for delays in power capacity generation projects. He added that public sector manufacturer BHEL was looking to raise its capacity, a development that should help India close down to the target for the ongoing five year plan.

Comparing the situation with China, he said that China was commissioning nearly one  station of 2 GW every week, adding about 100 GW in a year where as India so far has not been able to add even 10 GW in any single year.