Lok Sabha Question No. 1912 (UNSTARRED), answered on 2025-07-31
Subject: Per Unit Cost of Power Generation
Ministry: POWER
Asked by: Shri Imran Masood

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.1912 ANSWERED ON 31.07.2025

## PER UNIT COST OF POWER GENERATION

†1912.   SHRI IMRAN MASOOD:

Will the Minister of POWER be pleased to state:

- (a) the total power generation capacity across the country since 2015, year-wise;

(b) the steps taken by the Union Government to increase power generation capacity since 2014;

- (c) whether the per unit cost of power generation has increased due to coal imports during the last few years and if so, the details thereof; and
- (d) the  steps  taken  by  the  Government  to  reduce  the  per  unit  cost  of  power generation?

## A N S W E R

## THE MINISTER OF STATE IN THE MINISTRY OF POWER

(SHRI SHRIPAD NAIK)

(a) : The year wise details of total power generation capacity in the country from 201415 to 2025-26 (upto June, 2025) are given at Annexure.

(b) : Government of India has taken following steps to increase the power generation capacity in the country since 2014:

- (i) Increase in installed capacity from 2,48,554 MW in March 2014 to 4,84,819 MW in June 2025 including increase in installed capacity of coal based thermal power plants from 1,39,663 MW to 2,42,040 MW and Renewable Energy (RE) (including Large Hydro) from 75,519 MW to 2,33,999 MW during this period.
- (ii) Addition of 2,01,088 circuit kilometer (ckm) of transmission lines, 7,78,017 MVA of Transformation capacity and 82,790 MW of Inter-Regional capacity with capability of transferring 1,18,740 MW from one corner of the country to another.
- (iii) Waiver of ISTS charges on transmission of electricity generated from Solar, Wind, Pumped Storage Plants and Battery Energy Storage Systems.

……..2.

- (iv) Renewable Purchase Obligations (RPOs) and Energy Storage obligations Trajectory till 2029-30.
- (v) Construction of Green Energy Corridors and putting in place 13 Renewable Energy Management Centres.
- (vi) Setting up of Ultra Mega Renewable Energy Parks to provide land and transmission to RE developers for installation of RE projects at large scale.
- (vii) Reduction of AT&C losses from 22.62% in 2013-14 to 16.28 % in 2023-24. All current payment of GENCOs are up-to-date and the legacy dues of GENCOs have come down from Rs. 1,39,947 crore to Rs. 18,857 Crore.
- (viii) In 2019, Government announced measures to promote Hydro Power Sector such as Declaring  Large  Hydro  Projects  (>  25  MW)  as  Renewable  Energy  source,  Tariff rationalization measures for bringing down hydropower tariff, Budgetary Support for Flood moderation / Storage Hydro Electric Projects (HEPs), Budgetary Support towards  Cost  of  Enabling  Infrastructure  i.e.,  roads  /  bridges,  etc.  The  scope  of Budgetary support towards cost of enabling infrastructure has been subsequently expanded on 08.10.2024 to include : (a) Transmission line upto nearest pooling point  including  upgradation  of  pooling  sub-stations,  (b)  Railway  sidings,  (c) Communication infrastructure, and (d) Rope ways.
- (ix) Introduction of SHAKTI policy for transparent allocation of coal to Thermal Power plants. This enabled efficient domestic coal allocation to Thermal Power Plants and also ensured revival of various stressed Thermal Power Projects.
- (x) Construction  of  the  Inter-State  transmission  system  ahead  of  the  generation capacity.

(c): The cost of generation of electricity from coal based power plant is dependent upon the price of coal and cost of freights and in case of blending also the price of the blended imported coal. The price of imported coal is linked with International Indices, source of origin and factors like ocean freight, insurance etc. which vary with international demand supply scenario. Further, every generating company consumes imported coal as per its requirement.

With sustained supplies of domestic coal to Domestic Coal Based (DCB) plants, the advisory for blending of imported coal has been withdrawn from 16 th  October, 2024.

Average Power purchase cost has decreased by 5 Paisa between FY 2022-23 and FY 2023-24.

…..…3.

(d): Government  of  India  have  taken  following  steps  to  reduce  the  cost  of  power generation in the county:

- (i) Setting  up  of  Power  Exchanges  to  ensure  fair,  neutral,  efficient  and  robust electricity price discovery.
- (ii) Introduction  of  flexibility  in  utilization  of  domestic  coal  by  State/Central Generation Companies (GENCOs).
- (iii) Rationalization  of  linkage  sources  of  State/Central  Generating  Companies (GENCOs) and Independent  Power  Producers  (IPPs)  with  a  view  to  optimize transportation cost.
- (iv) Issuance  of  guidelines  for  tariff  based  bidding  process  for  procurement  of electricity  under  Section  63  of  Electricity  Act,  2003  to  promote  competitive procurement of electricity by distribution licensees.
- (v) Reduction of Aggregate Technical & Commercial (AT&C) losses under RDSS will improve the finances of the utilities, which will enable them to better maintain the system and buy power as per requirements; benefitting the consumers.
- (vi) The operationalisation of National Merit Order Dispatch with the objective of lowering the cost of electricity to consumers.

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## ANNEXURE

## ANNEXURE REFERRED IN REPLY TO PART (a) OF UNSTARRED QUESTION NO. 1912 ANSWERED IN THE LOK SABHA ON 31.07.2025 *************

The year wise details of total power generation capacity in the country from 201415 to 2025-26 (upto June 2025):

| Year (as on 31 st March)   | Installed Capacity (in MW)   |
|----------------------------|------------------------------|
| 2014-15                    | 2,75,895                     |
| 2015-16                    | 3,06,330                     |
| 2016-17                    | 3,28,146                     |
| 2017-18                    | 3,45,631                     |
| 2018-19                    | 3,57,871                     |
| 2019-20                    | 3,71,334                     |
| 2020-21                    | 3,83,521                     |
| 2021-22                    | 3,99,497                     |
| 2022-23                    | 4,16,059                     |
| 2023-24                    | 4,41,970                     |
| 2024-25                    | 4,75,212                     |
| 2025-26 (upto June, 2025)  | 4,84,819                     |

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