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Power Generation Capacity Target Remains a Pipedream
It took the Damodar Valley Corporation 122 months to complete the Mejia Thermal Power Station. During the 9th Five-Year Plan period thermal units in the Central sector took one-and-a-half-years to 10 years for completion of power projects. Thermal units in the state sector fared even worse than their Central counterparts. Their completion period during the same period varied from 2 years to 11 years. Some hydroelectric power projects took more than 25 years for completion. For instance, Kadana PSS in Gujarat took 26 years for completion and Indravati Power project in Orissa was completed in 23 years. Little wonder then the contribution of hydroelectric in total power generation in the country is declining over the years. Though the private sector fared better in this regard one cannot conclude that privatisation preempts delay in project implementation in the power sector. That is because power projects, both in the private and public sector, have to secure a spate of clearances and conform to umpteen rules and regulations.
Delays in the execution of power generation projects have a spillover effect on transmission projects too. Unless the power generation projects are completed on time power transmission projects will not be completed on schedule, resulting in the languishing of outlays and projects year after year; not to speak of the immense loss suffered by the user industries.
The reasons for the delay in completion of projects are aplenty. They include delays in getting clearances, problems in land acquisition, public interest litigations, inability to tie up funds, environment issues, law and order problems (especially in the north-east region), and selling and power purchase agreements. But the single most important reason is political interference. Most of the projects in the public sector are announced by political leaders for their own political gains and not because of any economic considerations. In fact, the feasibility studies of these projects are conducted only after such announcements. Even if a study reveals that the project is unviable, the project is still given the go-ahead if only to fulfill the political leader's wish.
No wonder then the government is unable to achieve even 50 per cent of the target set for capacity generation in its Five-Year Plans. During the last three Five-Year Plans capacity addition did not exceed 20,000 mw per plan. And the government plans to add 100,000 mw in the next 10 years. Perhaps, what is hitting the Plan targets the most is the underutilisation of budgeted funds for the power sector, a trend that has continued evev in the current plan period. Nor are there indications that the government is putting an end to it.
Power Generation Capacity Target Remains a Pipedream
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