About 4,000 MW of ageing thermal power generation capacity will be taken out of production during the Twelfth Plan period, according to Mr Arvinder Singh Bakshi, Chairman, Central Electricity Authority.
Mr Singh said these plants have served us long and the utilities have agreed to take them out of the system as new plants will be commissioned. “This will not be a big issue as we expect that the country will see the addition of about 88,000 MW during the Twelfth Plan,” he said.
He said the CEA is drafting a scheme for State utilities which will include supply of additional power and interest-related issues when they take up the renovation and modernisation of plants.
Speaking at the Eighth Power Plant Summit hosted by CII, Mr Singh said the pace of implementation of power projects has accelerated over the years. The power deficit has come down from 16-17 per cent six years ago to about 10 per cent now. Yet this is not good enough.
"The cost of generation has gone up due to input costs and already about 19 utilities have increased power tariffs. It has been agreed to hike power tariffs based on input costs. There is no other go for utilities,” he said.
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