Private sector leads power capacity additions

The private sector developers accounted for much of the power capacity addition that has taken place so far this fiscal. During April-October 2011, the private sector added 4,301 MW, more than what was added by the public sector utilities put together. Key private sector generation units commissioned during the fiscal include Adani Power's 660 MW Mundra (second unit), Tata Power-DVC's 525 MW Maithon pro­ject (Unit 1), two 300 MW units at JSW Energy's Ratnagiri project and Sterlite Energy's 600 MW Orissa unit.

The strong private sector performance is in line with the progressively improving trend of private developers to capa­city addition during the first four years of the current Plan period. This is despite most of these pro­jects not having firm power purchase agreements, dif­ficulties in getting site cleara­n­ces, lower preference in allocation of fuel linkages, and im­pedim­ents such as the need to furnish bank guarantees to get tra­ns­mis­sion corridors bu­ilt. In 2010-11, a reco­rd capacity addition of 12,160 MW had been achieved.