Raise energy supply for 8% GDP growth: Planning commision

GDP growth of 8 per cent is not possible without a commensurate increase in supply of energy, electricity, coal, oil and gas, and other fuels, the Planning Commission has said in the final draft paper for the 11th Plan.

It has also emphasised exploitation of the country's hydro and nuclear power capabilities.

The Planning Commission has asked state governments to set more ambitious targets to tone down aggregate technical and commercial losses to 15 per cent from the current level of around 40 per cent by the end of the 11th Plan.

It further added that this could be done if managements of state electricity boards were professionalised and given autonomy of operation without political interference.

The Commission said, "The states should also adopt the acclerated power development and reform programme, using technological tools such as smart metering and GIS mapping for real time, monitoring and accountability at each distribution transformer."

There is also a plan to increase power generation by 60,000 Mw by perfect fast breeder reactors. It can meet even 50 per cent of the power needs, but requires more attention than the technologies that can supplement only 10 per cent of our power needs.

An assurance on availability of coal and natural gas for new power plants, national concensus on royalty rates for fuels and compensation for host states also needs to be worked for the 11th Plan.

The Plan panel has also projected that Coal India is aiming to increase production by 60 per cent during the 11th Plan. The demand of coal for energy would increase from 432 million tonnes in 2005-06 to 670 mt in 2011-12.

"The need for the power sector itself would increase by 180 mt taking the total to about 500 mt in 2011-12," the Commission said.

According to an estimate, the power generating companies may import 40-50 mt of superior thermal coal by the end of the 11th Plan.

Sources added, "Consumption of petroleum products is likely to rise from 112 mt in 2005-06 to about 135 mt by the end of 11th Plan with net crude oil imports reaching 110 mt."

However, the Planning Commission has expressed concern that the scope of trans-national gas pipelines needs to be explored from a longer term perspective, but no pipelines are likely to become available for 55 million tonne oil equivalent (MTOE) of gas import during the 11th Plan.

Thus liquified natural gas imports would need to rise to four times from the current level of 5 million tonne.