Crisis looms large, says NGO

RAJINDER KAUR
Ropar

The delicensing of power generation in the country may lead to a crisis situation, with the Environment Ministry having already given environmental clearances to thermal power plants with a capacity of 192,913 MW without assessing the ground realities. Besides the Coal Ministry has received applications for long-term coal linkage for 974 power projects with a generation capacity of over 5.96 lakh MW.

Prayas Energy Group, a Pune based NGO, has analysed that the Ministry has accorded environmental clearances to a large number of coal and gas-based power plants whose capacity totals 1,92,913 MW.

Another 5,08,907 MW are at various stages in the environmental clearance cycle. Sounding a note of caution, it says there are around 7,01,820 MW of coal and gas plants waiting to be built in the coming years. The role of the Central Electricity Authority in examining the viability of the projects has been completely ignored.

Coal-based plants account for an overwhelming 84 per cent of these in-pipeline projects. These additions are more than six times the currently installed thermal capacity of 113,000 MW.

While the state and central sectors have a large share in the existing Thermal Power Plants, around 82 per cent, the private sector participation is set to increase significantly, with this sector accounting for 73 per cent of all projects in the pipeline. Also, only 10 private corporate groups are planning to build about 1,60,000 MW.

Similarly, of the 974 applications received by the Coal Ministry, 107 are from central and state utilities for capacity addition of 1,22,405 MW, there are 434 applications from Captive Power Plants(CPPs) for 37,345 MW and 433 from Independent Power Producers (IPPs) for a record 4,25,836 MW capacity addition. Although Coal India Limited (CIL) has assured to supply about 600 million tonnes in 2016-17, the actual availability is likely to be 415 million tonnes leading to a shortfall of 185 million tonnes by the end of the 12th Plan.

While the country has abundant coal, we have not been able to achieve the required production from these reserves and a steep rise in imports is forecast for the end of the 12th Plan. With the de-licensing of thermal power generation, it is now assumed that the market will weed out excess and inefficient capacity.