India's electricity needs and plan for addition of generation capacity

India has been facing shortage of electricity for almost a decade. According to the Central Electricity Authority (CEA), during the financial year 2008–09, the Indian utilities could supply 689 billion kWh of electricity against requirement of 774 billion kWh, which represents shortfall of about 11.0%. The peak supply of 96.7 GW fell 12% short of peak demand of 109.8 GW during this period.⁽¹⁾ This is so when the economic growth has slowed down in the wake of global financial crisis. The major states like Maharashtra, Tamil Nadu, Bihar, Uttar Pradesh, Punjab, and Madhya Pradesh are facing peak shortage ranging from 17.4% to 27.3%. Load shedding in major cities is usual and villages do not get electricity for more than 12–14 hours each day in majority of states.

The Government of India has recognized that shortage of power and lack of access continue to be major constraints on economic growth. The government in its Eleventh Five Year Plan (hereinafter called ‘Eleventh Plan’) aims to overcome the shortages by the end of year 2011–12 while expanding network for universal access to electricity. It will require sustained efforts and substantial investment in generation, transmission and distribution along with investment in linkages like coal mines, gas exploration, gas-pipelines, ports, railways, roads etc and the manpower.

The paper primarily focuses on the generation capacity addition plan of the country and the progress attained in first two years of the Plan.