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Funding Issues in Power Sector

In: Business and Management

Submitted By om286
Words 864
Pages 4
Key Inputs for

th XII


Financing of Power Sector
Central Electricity Authority Government Of India

 Sector Profile
 Magnitude of Investment  Funding Sources and Issues

Power Sector Profile
20 15


10 5
Energy Def icit Peak Def icit

1998 -99 2000 -01 2002 -03 2004 -05 2006 -07 2008 -09

 Energy availability has increased by 32.7% in the past 5 years but

demand continues to outstrip supply
 Nearly 600 million Indians do not have access to electricity  AT&C losses currently exceed 30% for the country as a whole.

Need to Accelerate Power Sector Growth
Growth in GDP and Gross Power Generation
15.00 Grow th in Gross Generation 10.00 Grow th in GDP



0.00 199900 200001 200102 200203 200304 200405 200506 200607 200708* 200809*

 For India to grow @9% p.a. its power sector must also grow at

7.2% p.a (XIIth Plan projects electricity use elasticity wrt GDP at 0.8)  But over the last 5 years, Gross Power generation has grown by only 5.89% pa  NEP objective : Power for all by 2012

Targeted Growth of Generation
 XIth Plan target is 78,700MW
 XIIth Plan target is 1,00,000 MW  Current investment focus is on Generation  Investment in Sub-transmission and Distribution is lagging  However, for smooth functioning of the sector Investment

should be in the ratio 2:1:2

Magnitude of Investment
(Rs crore)
Plan Generation Transmi ssion 1,40,000 2,40,000 Distributi R&M Total on etc 3,09,077 18,104 10,59,515 4,00,060 11,35,142
XIth Plan 5,91,734 XIIth 4,95,082 Plan

•XIth Plan availability assessed at Rs 6,37,873 crore •Leaving a gap of Rs 4,21,642 crore of which • Debt gap 269,067
• Equity gap 152,575

•Even bigger gap in XIIth Plan unless greater mobilization is achieved

External Funding (USD mn)

1600 1400 1200 1000 800 600 400…...

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