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The power generation capacity added in the 11th Plan, which ended in March 2012, was 53,000 MW. It is close to 68 per cent of the originally projected addition (78,700 MW during the Plan period). But the capacity addition achieved is no mean feat, given that the quantum is similar to what the country had added in the previous three Five-Year Plans (15 years ended March 2007). In fact, a 20,501 MW of addition last fiscal was the highest for any year and is close to 21,180 MW added in the whole of 10th plan period (2002-07).
Additionally, a significant capacity augmentation in renewable energy (close to 25,000 MW) and captive power generation (connected to the grid) took the overall installed capacity to more than 2 lakh MWs.
Coal capacity
The capacity addition was largely driven by coal-based projects, which accounted for four-fifth of capacity added over the last five years. (We have excluded renewable energy addition in our analysis and concentrated on conventional capacity additions.)
Delays in hydro capacity addition and focus on coal-based generation projects by private players has further deviated the ratio of hydro:thermal capacity to 23:77 from optimal mix of 40: 60. Hydro capacity addition, given its high gestation had no takers in spite of lower costs (as there is no fuel cost component). The net addition to India's hydro-power capacity was only 4,330 MW in the current Plan period compared to 40,000 MW of coal-based projects. Around 15,627 MW of hydro capacity was originally envisaged during the 11th plan.
The coal-based power capacity addition grew at a rate of 9.5 per cent annually over the last five years (however much is added over the last couple of years). The coal production during the period only went up by 4.6 per cent compounded annually. Therefore, the power generation has lagged capacity addition and the plant load factors (a measure of efficiency for thermal plants) fell to 73.3 per cent in 2011-12 from 78 per cent in 2006-07.
Private players: Major contributors
On a positive note, the better execution capabilities of private players came forth in the last Plan. More than 18,000 MW of capacity was added by the private sector, in addition to captive and renewable projects developed by these players. Much of the capacity addition was again through the thermal route. The working group envisages more than 40,015 MW of 76,000 MW of capacity to be added by private players in the current Pan (ended 2017).
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