The Indian Power Sector Scenario

As per the Ministry of Power (“MoP”), Government of India (“GoI”), the all India installed capacity of electric power generating stations was 112,058.42 MW as on March 31, 2004. This total capacity consisted of 29,500.23 MW hydro power based capacity, 77,968.53 MW thermal power based capacity, 2,720 MW nuclear power based capacity and 1,869.66 MW wind power based capacity.

A capacity addition target of 5,202.34 MW consisting of 3,765.00 MW of hydro power and 1,437.34 MW of thermal power was envisaged for the year 2003-04. As against the aforesaid capacity addition target, a capacity addition of 3,951.62 MW consisting of 2,590.00 MW of hydro power and 1,361.62 MW of thermal power was achieved. (Source: MoP website).

The 16th Electric Power Survey (“EPS”) carried out by the Central Electricity Authority has projected a peak demand of 115,705 MW and an energy requirement of 719,097 MU by the end of 10th Five Year Plan (2002-07), while the peak demand and energy requirement by the end of the 11th Five Year Plan (2007-12) has been projected at 157,107 MW and 975,222 MU respectively. The GoI has targeted capacity additions of about 41000 MW during 10th Five Year Plan. Further, in order to provide power on demand to all consumers by 2012, the GoI plans to add around 100,000 MW of additional capacities during the 10th and 11th Five Year Plan periods. (Source: 16th EPS and Crisinfac report ’State of the Industry’).

Installed Generation Capacities (FY 2000-FY 2004) by Generation

As of March 31	Thermal (% of total)	Installed Capacity (in MW)	Hydro (% of total)	Installed Capacity (in MW)	Wind (% of total)	Installed Capacity (in MW)	Nuclear (% of total)	Installed Capacity (in MW)	Total (in MW)
2000	71.8	70,493	24.3	23,857	1.2	1,154	2.7	2,680	98,184
2001	71.2	72,355	24.7	25,142	1.3	1,269	2.8	2,860	101,626
2002	71.0	74,550	25.0	26,269	1.4	1,507	2.6	2,720	105,046
2003	71.0	76,607	24.9	26,910	1.6	1,736	2.5	2,720	107,973
2004	69.6	77,968	26.3	29,500	1.7	1,870	2.4	2,720	112,058

Installed Generation Capacities by Sector (FY 2004)

Type/Sector	Central	%	State	%	Private	%	Total
Thermal	27,257	35.0	41,676	53.4	9,036	11.6	77,968
Hydro	5,374	18.2	23,250	78.8	876	3.0	29,500
Nuclear	2,720	100.0	0	0	0	0	2,720
Wind	0	0	65	3.5	1,805	96.5	1,870
Total	35,351		64,991		11,717		112,058

Capacity Utilisation

As of March 31	Central	State	Private	Total
2000	73.8	63.7	68.9	67.3
2001	74.3	65.6	73.1	69.0
2002	74.3	67.0	74.7	69.9
2003	77.1	68.7	78.9	72.2
2004	78.7	68.4	80.4	72.7

Capacity Addition Program (Tenth Plan)

Type/Sector	Central	State	Private	Total
Thermal	12,790	6,676	5,951	25,417
Hydro	8,742	4,481	1,170	14,393
Nuclear	1,300	0	0	1,300
Total	22,832	11,157	7,121	41,110

Power Supply Position

The country has in the recent past has being experiencing chronic peak shortages of power availability. While the peak shortages have come down from 20.5% in 1992-93 to 12.2% in 2002 -03, overall power shortages have firmed up to 8.8% in 2002-03 from 7.3% in 1992-93. The chart below summarizes the power shortage scenario in the country.

Projected Energy Demand

The projected energy demand in the country is as tabulated below.

(in MU)

State / Year	2004-05	2006-07	2011-12	2016-17
Northern Region	192,847	220,820	308,528	429,480
Western Region	200,269	224,927	299,075	395,859
Southern Region	171,258	194,102	262,718	354,599
Eastern Region	62,601	69,467	90,396	117,248
North-Eastern Region	8,090	9,501	14,061	20,756
Total	635,065	718,817	974,778	1,317,942

Projected Peak Demand

State / Year	2004-05	2006-07	2011-12	2016-17
Northern Region	31,017	35,540	49,674	69,178
Western Region	31,386	35,223	46,825	61,966
Southern Region	27,337	31,017