Date:28/07/2005 URL: http://www.thehindubusinessline.com/2005/07/28/stories/2005072802360500.htm

Back `India can generate 90 billion units with better power plant maintenance'

Our Bureau

Hyderabad , July 27

IF power plants take to renovation and maintenance, India could generate additional 90 billion units of power, which is estimated at about 15 per cent of the country's 480-500 billion units of generation, according to experts.

The Executive Director of CESC, Mr P. K. Basu, said that a recent study by the Central Electricity Authority (CEA) estimated that if the 135 thermal plants and 35 hydel generating stations can be refurbished to the original rating, the enhancement in power generation would be an achievable target.

Typically, for refurbishment, a power plant requires about Rs 1 crore per megawatt (mw) as against Rs 4 crore per mw in case of a new project, therefore the industry is keen to focus on this issue, said Mr Basu, who is also part of a think tank created by the Confederation of Indian Industry (CII).

Addressing representatives from the power sector at the Power Plant Summit 2005 organised by CII and the Godrej-Green Business Centre here, Mr Basu said an expert committee has found that already many plants in the country have begun to take this route. The working group comprising NTPC, BHEL, Tata Power, CESC and a host of other power companies is studying both domestic and overseas plants located in six countries to come up with benchmarks and best practices.

Investors such as Powergen and AES had come and exited Indian operations expressing regulatory concerns.

Due to the changed business environment, the economic buoyancy and the potential that the power sector now offers, many foreign investors have begun to return and are looking at India as a possible investment destination.

With the Electricity Act 2003, efforts have been initiated to bring down transmission and distribution (T&D) losses, which are estimated at about 40 per cent, to about 12 per cent.

The Principal Secretary Finance, Government of Andhra Pradesh, Mr Ramakanth Reddy, said, "The overall demand supply gap in the country is now estimated at about 8 per cent and unless steps are taken to bridge this, India would possibly face a scenario where we would have to go without power for about 10 hours."

Quoting a World Bank report, Mr Reddy said, "It is estimated that India would require about $10 billion in investments over the next five years to augment additional capacities. As opposed to the current capacity of about 1,15,544 mw, and given the projections, India would need about 1,00,000 mw of additional power generation by the year 2012."