Lack of investments by public sector undertakings and a delay in foreign assistance are two key reasons cited for slippages in capacity addition in the central thermal generation sector during the Ninth Plan.
Whereas in hydel power, funding constraints, land acquisition problems, adverse law and order situation and contractual glitches have led to slippage in capacity addition in the central sector during the period.
In the case of the private sector, failure to achieve financial closure on account of lack of payment security mechanism, inability of states to extend escrow cover and litigation problems have largely contributed to targets not being met, government officials said.
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The results of these problems have been telling. Capacity addition in the central and private sectors is expected to be a dismal 40 per cent and 29 per cent, respectively, of targets originally set for the Ninth Plan.
A higher overall realisation of around 47 per cent in generation capacity addition targets during the Ninth Plan has been possible largely on account of an 84 per cent realisation of targets in the state sector. Bucking the dismal trend, the projects coming up in the state sector added 9,064 mw during the last Plan period as against a capacity addition target of 10,748 mw.
According to officials, the high realisation of capacity addition targets during the Plan period by the state sector is largely on account of the accelerated generation and supply programme (AG&SP) launched by the power ministry. "During the Ninth Plan period, the programme has helped in commissioning of new generation capacity of 5,219 mw, of which 5,144 mw has come up in the states sector and 75 MW in the Central sector," a senior power ministry official said.
According to analysts, overambitious projections and lack of commensurate follow-up action have also been a prominent reason for the slippages in capacity addition targets for the Central and private sector set during the past Plan periods.
In the Eighth Plan period also, as against a target of 30,538 mw the actual achievement was 16,423 mw.
For the Tenth Plan period (2002-07), the power ministry has set an ambitious capacity addition target of 46,939 mw. Of this, 24,405 mw is to come in the Central sector, 12,033 mw in the state sector and 10,501 mw in the private sector.