India’s power minister, R.K. Singh informed the Parliament as much as 59,810 MW of thermal power generation capacity is under construction in the country which includes 23,730 MW to be developed by private players. “While the under-construction projects under the central sector totalled 18,320 MW, those under the state sector stood at 17,760 MW, he said in a written reply to the Rajya Sabha.
The capacity of under construction large hydro (above 25 MW) projects stood at around 14,014 MW.
Explaining the reasons for delay in implementation of these projects, the minister said “The major reasons for time overrun in respect of the thermal and hydel projects are related to availability of materials and equipment, land issues and inter-state matters. The cost overrun arises from increase in interest rate, inflation and change in scope of the project.”
As per the Electricity Act 2003, power generation is a de-licensed activity. Investment in setting up of power projects is made by the developers concerned. Therefore, no funds are sanctioned or allocated by the Centre in this regard, except contribution in the form of equity of the Central Public Sector Units for setting up of such projects on a case-to-case basis.
Singh also told the Rajya Sabha that the share of renewable energy (RE) in India’s total power generation capacity stands at 23.82 per cent as on August 31. On March 31, this year, the figure stood at 23.51 per cent, which shows that there’s only a nominal increase over the course of the last five months. At the end of March 2019, the share of renewable energy in India’s power basket was at 21.80 per cent.