States powerplay with boilers short-circuits capacity addition

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Friday , May 09, 2008 at 2156 hrs sector targets.”

“Boilers and pressure vessels form an important element of many infrastructure and industrial segments, including power, fertilisers, paper, cement, petrochemicals and refineries. Considering the overall demand patterns, there is a need to substantially augment the existing indigenous manufacturing facilities as well as create additional capacity by new players not just in boilers, but all associated equipment required in thermal power plants,” he said.

“Our energy GDP elasticity index is 1.5, meaning with 1% growth in GDP, the commensurate energy demand goes up by 1.5%. So the requirement of energy to sustain the high GDP growth rates of 8-9% is really very high,” he added. To sustain India ’s current GDP growth through to 2030, the country needs to augment its energy supply by 4-5 times the current consumption levels, he stressed.

Pointing to China’s aggressive capacity addition in the power sector in the last five years, the Heavy Industries secretary said China was able to do this by using ‘standardised sets’ and India must take a clue from there in order to meet the ambitious capacity addition target of 1,60,000 mw in the Eleventh and Twelfth Five Year Plan. Of this, the government aims to add 78,500 mw capacity in the Eleventh Plan period, compared to the mere 22,000 mw added in the Tenth Plan.

Although the government is emphasising the use of hydro, nuclear and renewable sources of energy, the primary dependence will still remain on thermal power generation based on fossil fuels, which contribute 64% of the country’s total installed capacity currently. In this context, more efficient use of India ’s coal reserves is imperative which needs better utilisation of boilers and hence, boiler reforms need primary attention, Dash said.