Friday, 30 March 2012
Government plans to bailout power distribution companies
The government is examining the option of a financial bailout for power distribution companies, even as it yet again misses the planned target for cramping up generation capacity by over 8,000 MW as the 11th Five Year Plan draws to a close.
The government managed to raise generation capacity by 53,922 MW against a target of 62,000 MW. This target was set after shifting mid-way the original goalpost, set at 78,500 mw. But in spite of the "highest generation capacity addition in a financial year", even the reduced target was missed. "In the current fiscal, the capacity addition of 19,459 mw is the highest ever for any financial year," power minister Sushilkumar Shinde told reporters on Thursday. There are five more projects aggregating 1,885 MW are expected to be commissioned shortly.
Shinde, however, said 875 billion units of electricity generation would be achieved this financial year, which would be 8% higher than 811 billion units in the previous fiscal.
The government managed to raise generation capacity by 53,922 MW against a target of 62,000 MW. This target was set after shifting mid-way the original goalpost, set at 78,500 mw. But in spite of the "highest generation capacity addition in a financial year", even the reduced target was missed. "In the current fiscal, the capacity addition of 19,459 mw is the highest ever for any financial year," power minister Sushilkumar Shinde told reporters on Thursday. There are five more projects aggregating 1,885 MW are expected to be commissioned shortly.
Shinde, however, said 875 billion units of electricity generation would be achieved this financial year, which would be 8% higher than 811 billion units in the previous fiscal.
