Indian Power Sctor

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The Future of the Power Sector
An Analysis

Tushar Alva Roll No-2009A06

Executive Summary
  The electricity sector in India is predominantly controlled by Government of India's public sector undertakings (PSUs) but the private sector is also catching up fast. India is world's 6th largest energy consumer, accounting for 3.4% of global energy consumption. Due to India's economic rise, the demand for energy has grown at an average of 3.6% per annum over the past 30 years. In March 2009, the installed power generation capacity of India stood at 147,000 MW while the per capita power consumption stood at 612 kWH. The country's annual power production increased from about 190 billion kWH in 1986 to more than 680 billion kWH in 2006. India faces a serious shortfall in power generation. During the tenth plan, only 23,000 MW of capacity was added against the original target of 41,000 MW. During the 11th plan, a target of 78,000 MW has been set. Anil Kakodkar, Chairman, Atomic Energy Commission, India had estimated that the per capita electricity generation would reach about 5300 kWh per year in the year 2052 and total about 8000 TWh. The Government of India has an ambitious mission of „POWER FOR ALL‟ BY 2012. This mission would require that the installed generation capacity should be at least 200,000 MW by 2012 from the present level of 144,564.97 MW. Power requirement will double by 2020 to 400,000MW.

The ratio of energy generation and GDP growth should be 1:1. The growth in electricity consumption over the past decade has been slower than the GDP‟s growth. This could be due to high growth of the services sector or it could reflect improving efficiency of electricity use. Moreover, captive generation has also increased. However, as growth in the manufacturing sector picks up, the demand for power is also expected to increase at a…...

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