GAMMON INDIA LIMITED

China’s electricity consumption had constantly been growing at rate that was higher than the country’s GDP
growth each year between 2000 and 2007. For example, China’s electricity consumption growth in 2007
was 14.4%, which was 2.2 percentage points higher than GDP growth for the same year. (Source: China
Statistical Yearbook 2000-2008) The table below set for the electricity output, consumption and the annual
growth rate of electricity consumption in China from 2000-2007:
Electricity output
64
Electricity
consumption
Electricity
consumption
growth rate
(TWh) (TWh) (%)
2000 ................................................... 1,355.60 1,347.14 9.5
2001 ................................................... 1,471.66 1,463.35 9.3
2002 ................................................... 1,640.47 1,633.15 11.8
2003 ................................................... 1,910.58 1,903.16 15.6
2004 ................................................... 2,203.31 2,197.14 15.4
2005 ................................................... 2,500.26 2,494.04 13.5
2006 ................................................... 2,865.73 2,858.80 14.6
2007 ................................................... 3,281.55 3,271.18 14.4
Source: China Statistical Yearbook 2000-2008
Power Sector in India
The growth in demand for power in India has generally been higher than the gross domestic product growth
rate. According to the Indian Ministry of Power, as of March 2009, Indian power supply needed to grow at
approximately more than 7.00% annually to keep pace with gross domestic product growth at 8.00% per
annum. (Source: Ministry of Power, April 2009) As of June 2009, India has a total installed power
generation capacity of 150,323.41 MW, which is insufficient to service India’s demand for power. (Source:
Central Electricity Authority) The following table shows the difference between the demand for power and
the supply of power in India over the last few years:
Source: Ministry of Power Annual Report, 2007-08