CEAs findings come after Prime Minister Manmohan Singh on Sunday admitted to slippages in the proposed capacity addition of 78,700 mw by the end of 2011-12. He also added that the countrys capacity addition will be between 60,000 and 65,000 mw. However, in August capacity addition was recorded at 1,075 mw against the target of 800 mw.
Sources at the power ministry and CEA told FE, Delays in the implementation of projects are due to delays in the placement of orders, mainly civil works, balance of plants (BOPs), non sequential supply of material for the main plant and BOPs, shortage of skilled manpower for erection and commissioning, contractual disputes and the inadequate deployment of construction machinery. Moreover, the delays are also due to the time taken in securing environment and forest clearances and delays in developing infrastructure facilities like reliable construction power supply and roads at project sites.
The CEA report also points out that the peaking shortage has fallen to 11.3% (13,039 mw), compared to 14.2% (16,258 mw) in August. The north-eastern region tops the list with a shortfall of 17.3% (289 mw) followed by the western region at 16.9% (6,274 mw) and the northern region 14.2% (5,002 mw). Incidentally, during the same month the Central Electricity Regulatory Commission had imposed price caps ranging between 10 paise per unit and Rs 8 per unit for 45 days. The move was aimed at avoiding mega profit earned by sellers on power exchanges.