Private sector, which is slated to achieve capacity target of 15,043 mw of the total target of 78,700 mw by the end of 11th Plan period, has to strive further. The actual addition by the private players was a paltry 882.50 mw against the target of 3,453.70 mw in 2008-09.

For 2009-10, the private sector is expected to add a record 6,125 mw but there has been a slow progress.

The power ministry has convened a meeting of independent power producers (IPPs) on July 14 to discuss way to clear roadblocks delaying projects implementation. Power minister Sushilkumar Shinde told FE ??The ministry will like to know what progress IPPs has made in the proposed capacity addition for 2009-10 and also for the remaining years of the 11th Plan period.??

Delays in environment and forest clearances, fuel linkages and land acquisition and on top of it financial closure are some of the critical issues, which are hampering the project implementation.

A Mumbai-based IPP, who desired not to be quoted, cited a classic example of Maharashtra where the state government entered into memorandum of understanding with IPPs way back in April 2005 for the capacity addition of 12,500 mw. However, except power project of 1,200 mw by Jindals none of the project developers has succeeded in pushing through the implementation. This was largely because of strong opposition from locals for land acquisition and the government?s inactive attitude.

Hyderabad-based IPP said considerable time is involved for seeking approval of forest clearance at state level. This was because of non-availability of land records, overlapping of land in revenue and forest records and delay in identification of land for compensatory afforestation.

According to sources, the situation is quite bad for the development of hydro power projects due to lack of appropriate mechanism at the highest level in the state to monitor environment and forest related proposals to expedite their appraisals and approvals.

Moreover, IPPs are concerned over the finance ministry’s decision to impose service tax on transmission projects. Sources in the power ministry admitted that it was unwarranted and the ministry has taken up the issue with the finance ministry for its reconsideration.