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Govt envisages Rs 5 trillion investment in power sector

Govt envisages Rs 5 trillion investment in power sector
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Union Power Minister Jyotiraditya Scindia outlined the need to resolve all the issues faced by the power sector in order to achieve the total installed capacity target of almost 315 gigawatts by 2016-17.

In order to realise this target, the government envisages an investment of about Rs five lakh crore during this period.

In an interview to a news agency, the minister expressed confidence of resolving key problems in the sector and said the required initiatives are being put in place.

He pointed out that all the four main areas of the power sector — generation, transmission, distribution and last-mile solutions — have their own issues.

He stressed on the need to evolve customised solutions to address the issues of each of these areas, which have their own characteristics, peculiarities.

While power producers are facing major problems like fuel shortage and regulatory hurdles, the country is also facing significant power shortages, mainly due to problems in the distribution and last-mile segments.

Recalling that the country’s power generation capacity has come a long way from just 1,625 mw at the time of independence in 1947, the minister said the capacity has gone up from 65,000 mw in 1991 to 228,000 mw at the end of March 2013.

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