PERFORMANCE BUDGET 1998-99 - Ministry of Power

2.3 The Working Group on Power for the IX Plan, in its recommendations, has suggested a
need-based capacity addition of around 57734 MW during the IX Plan. Taking into account
the present state of projects and the envisaged constraints, both physical and financial, it
has been felt that the feasible capacity addition during the IX Plan would be around 40226
MW. Even this is contingent upon the necessary approvals for new projects being obtained
on schedule and the projects being implemented without delay. According to the latest
review, projects aggregating to 21513.3 MW, comprising of 6904 MW in Central Sector,
11366.5 MW in the State/Joint -Sector and 3242.8 MW in the Private Sector are at
different stages of construction. Further, techno-economic clearance is available for around
14322 MW. A substantial capacity benefit is anticipated from these projects by the year
2002 once the Fuel Supply Agreements are signed and financial closures obtained.
Moreover, significant benefits are expected to accrue from liquid fuel projects, for which
full allocation of liquid fuels to support a generating capacity of around 12000 MW have
been made. To achieve this capacity alongwith the matching transmission and distribution
network, it has been estimated that the fund requirements would be of the order of
Rs.1,60,000 crore in the public sector. This comprises of Rs.1,05,000 crore in the State
sector and Rs.55,000 crore in the Central Sector. The fund requirement for the private
sector would be of the order of Rs.86,000 crore. Thus, the total requirement for the
power sector for the IX Plan would be around Rs.2,46,000 crore. A capacity addition
programme (Provisional) of 3299 MW consisting of 2754 MW Thermal and 545
MW of Hydel has been fixed for the year 1998-99.
2.4 Short term and long term strategies have been adopted by the Ministry of Power for
increasing power generation. Close monitoring of fuel supply particularly to thermal power
stations, steps for improving the liquidity position of SEBs and assisting the State Utilities
to step up generation from identified power stations, have been taken. For ensuring that
thermal power stations are not required to back down their generation, the programme
includes monitoring of critical evacuation links to other parts of the country. For increase in
power generation during IX Plan, additional budgetary support of Rs.897.5 crore was
provided to Central Public Sector Undertakings to ensure timely completion of ongoing
schemes, for accelerating the completion and undertaking the renovation and modernisation
of ongoing schemes and completion of critical transmission links. Projects that are languishing
for want of resources in the State Sector are also proposed to be expedited. Ministry of
Power is in the process of finalising a hydel power policy on the basis of the recommendations
of an Expert Committee. During the IX Plan, 3500 MW generation is expected to be
achieved in the hydel sector through Central sector projects.
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