The public sector power equipment manufacturer Bharat Heavy Electricals (BHEL) - which has a present manufacturing capacity of about 8,000 mw - will increase its capacity to about 15,000 mw by the end of 2012.
"The balance 10,000 mw will be added from private sector companies L&T and Alstom - 5,000 each" Ramesh said while releasing a Mckinsey report on "Powering India: The road to 2017".
India will be adding 300,000 mw of capacity over the next decade presenting an investment opportunity of $600 billion, according to McKinsey.
The minister however expressed serious concerns about the lack of availability of balance of plant (BoP) equipments. "The biggest bottleneck for the eleventh plan capacity addition will come from the BoP equipments. We need to augment the manufacturing capacity of coal and ash handling plants" he said. He also added that this will be the major focus of the newly formed NTPC-BHEL JV company.
The two power sector giants had formed a 50:50 joint venture company - NTPC BHEL Power Projects - last month for carrying out engineering, procurement and construction (EPC) contracts both in India and abroad.
Speaking at the meet, Montek Singh Ahluwalia, deputy chairman of the planning commission said that there had been an increasing participation of private companies in the power sector, which is a healthy sign.
"While only about 9 per cent was contributed by the private sector to the capacity addition of 21,000 mw in the 10th plan, above 30 per cent will come from private sector in the 11th plan period." Montek said.
Ramesh however said that only about 14 per cent of the targeted capacity addition for the 11th plan will be contributed by the private sector.
The government is planning to add about 78,000 mw of capacity in the eleventh plan period (2007-2012) to meet the country's growing demand for power.
