The Hindu Business Line : `India needs 10 pc annual growth in power generation'

The eastern region, with its abundant coal reserves, and the north-eastern region, with its huge hydro-power potential, together could become the veritable electricity hub of the country.

Kolkata , Nov. 17

A POWER sector report prepared by Ernst & Young jointly with Confederation of Indian Industry (CII) has stated that the country needs to achieve a minimum of 10 per cent annual growth in electricity generation in order to support industrial and economic growth.

Moreover, to provide electricity to all households by 2012, over 1,00,000 MW of capacity needs to be added, at an estimated investment (including the transmission and distribution) of $200 billion.

The report titled `Empowering North & North East' stressed the need to implement reforms in the power sector.

It is stated that the eastern region, with its abundant coal reserves, and the north-eastern region, with its huge hydro-power potential, together could become the veritable electricity hub of the country, although the electricity sector in these regions is far under-developed as compared to other regions.

The report, which was released here at an international conference on power titled `Power Mart 2005,' says that the eastern region with 66 per cent of the country's coal reserves has only 16 per cent share in the total thermal capacity in the country.

The scenario in the transmission and distribution segments is also not much different. Therefore, the current situation gives investors an opportunity to invest in a big way in the power sector in these regions.

The West Bengal Principal Secretary for Power, Mr Sunil Mitra, said that a high-powered committee in New Delhi recently took a decision in order to revamp the transmission corridor in West Bengal for evacuation of the State's surplus power to the power deficit States.

He said that the State had plans to invest about Rs 21,000 crore in the power sector by 2012, and in the process, the generation capacity would raised by 3,000 MW.

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