Soon half of India will get power from Private sector

While it is true that the execution of projects is much better in the private sector when compared to the govt. sector, the overall addition of capacity is woefully short of requirements / demand. Reasons being problems in land acquisition, lack of fuel linkages, problems in financial closure of the projects etc. Many of the projects are based on imported coal which would result in higher cost of generation, the way global coal prices are headed. It is an irony that eventhough India has one of the highest coal reserves globally, we have to depend on imported coal for power generation needs. Private sector alone may not be able to tackle the power shortage in our country and the govt. has to facilitate the capacity addition by improving the coal linkages for various projects, improving the rail infrastructure to transport the coal and enable faster clearances for projects.

Thanks Padmaja for the information. Though everything may be fine but probably the cost will be high. Still lets wait and watch the situation. Why I am apprehensive since there are a score of corporate are going ahead with power generation. 

Only time will tell that, whether it is achievable or not?
Thanks for referral, Padmaja.

this is a welcome note.thank you for the information.

it true that government is more reliable on the private company for electricity which is thermal power.we can't say anything just wait and watch......

Time for government to engage private sectors in a more meaningful way in issues like  power, energy , infrastructure and healthcare to name a few, a welcome move.

What the Power Minister has said is actually what is envisaged in the 12th Five year plan. Out of the total capacity of 100 gigawatts, 17000 megawatts is being planned for generation by alternative sources (including wind, solar and other non-conventional methods). 30000 MW is proposed for nuclear power. The majority has to be met by hydro and thermal power generation. The bulk of the generation is dependent on use of coal. The coal excavated in India is of low calorific value and therefore the govt has to take recourse to imports. The power losses will be curbed when the distribution is handed over to the private agencies under the OPEN ACCESS SYSTEM in which the users will have the option to choose the electricity service provider. The power can be purchased by the service provider from different generating sources which may be private or govt. and supplied to consumer under predetermined tariffs depending on time of supply. The billing would be automatically generated. This will bring about efficiency in the distribution system and power thefts will be eliminated.    

lot we think less happen many hurdles in implementation and control.  we have to wait and see...

lets wait and see, thanks for the insight padmaja 

It is true that major portion of power supply will be met through private sources. Hydro power is being encouraged in Himachal and Uttarakhand. Sikkim is also taking active interest in private power generation. Karnataka generates hydro power by extensive usage of its water resources. Setting up a power plant at Rs.7 Crores per MW is possible for private parties only. Small Hydro Power (SHP) generating 5 MW to 25 MW are being encouraged by Govt/IREDA on cheaper terms. Power Exchanges were set up on the lines of stock exchange where power is traded on day-to-day basis which makes it more competitive. 

Transmission losses and power subsidies are eating out the power generated.  Transmission losses have to be tapped up efficiently.  Private participation is a most welcome move in deed.  

The private participation is welcome but the pricing will be higher than the 
govt. fixed one.

Coal supply is a huge hit in this country for thermal energy production.  Government PSUs and the private sectors are scouting for coal from Indonesia, Malaysia, etc.  Subsidy in distribution is very high.  They have to do a lot to contain the transmission and distribution losses which is a whopping percentage (over 25%).  Private sector would pass on this loss to the consumers, thereby forcing high-cost power tariff to the consumers.   

There is very big difference between announcment and implementation .... lets we see....