Frustrated at repeated slippages in power capacity addition targets, the Prime Minister?s Office has decided to institute a special monitoring mechanism headed by the Cabinet secretary. The new set-up will not only review the progress on power projects on a monthly basis but will also identify and rectify delays and have powers to fix responsibility and take strict action for lapses.

Official sources told FE that this is yet another effort to discipline the sector which has become notorious for missing targets. There is also concern that the sluggish delivery from the sector might hit the growth momentum.

?Apart from presenting the progress report of projects to the power minister and member (energy), Planning Commission, we have also been asked to send the report to the cabinet secretariat on a monthly basis. This report will focus on activities getting delayed or showing deviation from the agreed time-line,? said a power ministry official.

While the cabinet secretariat will oversee general progress on projects, it will mainly take up cases reporting delays to identify the causes and take remedial actions so that projects are completed as per new time lines. If there is delay despite corrective actions, the group will also recommend penal action.

The government’s concerns stem from the slippages on capacity addition likely during the Eleventh Plan. Despite being the best Plan in terms of fresh capacity addition, targets have been revised downwards on more than one occasion and still, there have been slippages.

During the Eleventh Plan (2007-12), the government reduced the original target to 62,000 MW from 78,700 MW. Even this is unlikely to be met, with the Plan period expected to end with new capacity addition of a mere 44,000-45,000 MW. In the last year of the Plan, the power ministry expects to add a mere 7,675 MW, the lowest in any year of the current Plan.

Sources said a panel headed by the cabinet secretary has already been set up to review capacity addition. Another committee headed by the secretary, heavy industries, and senior officials from the ministry of power, CEA, NTPC and BHEL as members will regularly evaluate commissioning of power projects and report progress to the panel.

India currently has an installed generation capacity of about 1,70,000 MW. Even at this level, it faces high energy deficit of over 10% and equally high peaking power deficit of over 13%.