PRESS RELEASE

11th plan power target will be met: Shinde
Shinde inaugurates 10th India Power Forum
New Delhi, September 11, 2007

The government is confident of achieving the 78,000 MW power generation target for the Eleventh Five-Year Plan. According to Union Power Minister Sushil Kumar Shinde, the government has launched a special initiative for the development of coal-based ultra mega power projects--10 such projects have already been identified-in an effort to boost capacity.

Inaugurating the 10th India Energy Forum here today, Mr Shinde conceded that the capacity addition process had got off to a small start, but added that this was primarily because the country needs more equipment manufacturing entities to speed up its capacity-addition programme. In this regard, he said that BHEL was working on expanding its capacity and this would have a positive effect on the power generation programme. Simultaneously, the government was ready to welcome private power equipment manufacturers, he added.

Mr Shinde also disclosed that the Centre was likely to soon introduce a national hydro electricity policy to encourage private players in setting up hydel plants. This was necessary as the country had so far only tapped 30,000 MW of the potential 1.5 lakh MW hydel power capacity available.

Disclosing that nearly 56 per cent of the villages in the country were yet to get electric connections, the Minister said that the government hoped to provide connections to all villages by 2009 and to every household by 2012.

"We are also providing assistance to the new and renewable energy sector and expect that it will play a large role in places, which lack transport and communication facility. These remote villages can be benefited by energy created through sunlight, wind, bio-fuel and bio gas."

Addressing the Forum, Power Secretary Anil Razdan said that an integrated approach was necessary to meet energy needs. Agreeing with the Forum's theme that the power sector is the 'driver of growth', he said that given the current demand-supply imbalance, the country was currently a 'producer's paradise'. "This situation has to change and the consumer must become a key player. Growth in generation has to lead to better transmission and distribution systems that ensure quality of service for the consumers."

Distribution reforms were an essential component to achieving the 11th Plan target, according to Mr. B.K. Chaturvedi, Member (Power), Planning Commission. This, he said was necessary to make the power sector financially viable.

Organised by the leading industry body India Energy Forum (IEF), the 10th India Power Forum took up major issues impacting the power sector in view of the increased demand for energy to sustain 8-10 per cent economic growth.

The forum was attended by representatives of leading public and private sector bodies, state electricity organisations, policy-makers and regulators, equipment manufacturers and EPC contractors, fuel suppliers, bankers and other lenders, legal and management consultants, and researchers among others.

The 10th India Power Forum included a CEO's Forum on 'New Initiatives in Generation including Ultra Mega Power Projects, Merchant and Captive Power Projects, Decentralised Generation', followed by a luncheon session on 'Demand Side Management', and two plenaries focusing on 'Evaluating Power Sector Reforms' and 'Fuel Supplies Availability and Pricing'.