Lok Sabha Question No. 2341 (UNSTARRED), answered on 2017-03-16
Subject: Private Investment in Power Sector
Ministry: POWER
Asked by: UDIT RAJ

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.2341 TO BE ANSWERED ON 16.03.2017

## PRIVATE INVESTMENT IN POWER SECTOR

2341. DR. UDIT RAJ:

Will the Minister of POWER be pleased to state:

(a) the  amount  of  public  and  private  investments  made  in  the  power sector during the Eleventh and Twelfth Plan periods;

(b)      whether  any  study  has  been  conducted  to  assess  the  additional power requirement of the country during the next five years;

(c)    if so, the details along with the resources identified for the purpose; and

(d) the steps the Government proposes to take to enhance public and private investments in the power sector to achieve the goal of round the clock supply of power to all?

A N S W E R

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER, COAL, NEW & RENEWABLE ENERGY AND MINES

( SHRI  PIYUSH GOYAL )

(a) : The  amount  of  public  and  private  investment  made  in  the power  sector  (excluding  renewable  energy)  during  the  Eleventh  and Twelfth Plan periods is as under:-

(In Rs. Crore)

| Sector   | Eleventh Plan   | Twelfth Plan   |
|----------|-----------------|----------------|
| Public   | 3,92,110        | 6,98,191       |
| Private  | 3,01,370        | 4,42,588       |
| Total    | 6,93,480        | 11,40,779      |

...........2.

(b) & (c) : The electricity demand of the country is periodically assessed by  Electric  Power  Survey  Committee  (EPSC),  taking  into  account  the actual  electricity  demand  incident  on  the  system  in  the  past  years, various policies and programmes of the Government, various developmental  activities  planned  for  future,  etc.  The  latest  electricity demand forecast report is the 19th Electric Power Survey of India.

As per 19th Electric Power Survey (EPS) Report brought out by Central Electricity  Authority,  the  Electric  Energy  Requirement  (EER)  and Peak Demand of the country for the years 2016-17, 2021-22 & 2026-27 is given below:

| Year    |   Electrical Energy Requirement (MU) |   Peak Demand (MW) |
|---------|--------------------------------------|--------------------|
| 2016-17 |                              1160429 |             161834 |
| 2021-22 |                              1566023 |             225751 |
| 2026-27 |                              2047434 |             298774 |

Thermal  generation  with  a  capacity  of  51,218.59  MW,  hydro generation with a capacity of 12,217.5 MW and nuclear generation with a capacity  of  7,700  MW  are  at  various  stages  of  construction.  In  addition, 44,100  MW  nuclear  capacity  have  also  been  identified,  for  which  'InPrinciple' approval has been accorded by the Government of India (GoI). Further, GoI has set a target of 175 GW capacity from Renewable Energy Sources by 2022.

(d) : Various initiatives that have been taken by the GoI to encourage  public  and  private  investment  in  the  power  sector  are  given below:

- (i) Notification  of  National  Electricity  Policy  in  the  year  2005  and  the Revised Tariff Policy on 28.1.2016 with various provisions to encourage  private  sector  participation  in  generation  as  well  as  in transmission.
- (ii) 100%  Foreign  Direct  Investment  (FDI)  through  automatic  route  is allowed  for  projects  of  power  generation  (except  atomic  energy), transmission,  distribution  and  trading.  FDI  up  to  49%  is  allowed  in Power Exchanges registered under the Central Electricity Regulatory Commission (Power Market) Regulations, 2010, under the automatic route.
- (iii) The  Government  has  notified  Ujjwal  Discom  Assurance  Yojana (UDAY) scheme on 20.11.2015 for Operational & Financial Turnaround of DISCOMs.

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