GAMMON INDIA LIMITED

Source: Energy Information Administration, International Energy Annual 2006 (December 2008)
For 2006-2007, the world average per capita consumption of electricity was 2,596 Units per year, as
compared with India with 612 Units per year, China with 1,802 Units per year and OECD countries with
8,365 Units per year. (Source: Ministry of Power, Key World Energy Statistics 2007) The table set forth
below illustrates per capita consumption for 2007:
(kwh/year)
10,000
7,500
5,000
2,500
0
8,365
OECD
Countries
2,980
Middle
East
1,802
1,695
China Latin
America
Source: CEA, Ministry of Power, Key World Energy Statistics 2007
63
646
612
563
2,596
Asia India Africa World
Average
Continued economic development, lifestyle changes and a growing population are increasing the demand
for energy in developing countries like India and China. The current power supply position in these
developing countries is often characterized by persistent shortages, unreliability and high prices for
individual consumers.
The Government of India’s stated mission is to provide ‘Power for All’ by 2012. Its objectives for power
sector development include providing sufficient, reliable and inexpensive power. In 2007-2008, India
experienced power shortages due to an energy deficit of 11.0%, with a peak deficit of 12.0%. There has
been significant improvement in the growth in actual generation over the last few years. As compared to an
annual growth rate of about 3.1% at the end of the 9 th Five Year Plan and initial years of the 10 th Five Year
Plan, the growth in installed capacity during the 9 th and 10 th Five Year Plan was 22.0% and 26.0%,
respectively. (Source: White Paper on Strategy for 11 th Plan, prepared by the CEA and the Confederation
of Indian Industry, August 2007) The table set forth below illustrates India’s energy shortages since 2002:
(billion units)
1,200
1,000
800
600
400
200
0
8.8%
7.1%
559
546 498 519
Source: CEA, Ministry of Power
7.3%
591
548
8.4%
632
579
9.6%
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Energy Requirement (BUs) Energy Availability (BUs) Shortage (%)
691
625
739
9.9%
666
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%