News: 'India needs $100 b investment in power sector'

(BL 04/04/2006) London - India is searching for investments in its power sector from the UK with a senior official saying the country would need $100 billion to add another 62,000 MW to its capacity.

"This will include 44,000 MW thermal, 15,000 hydro and 3,000 MW nuclear," Umesh Narayan Panjiar, Additional Secretary in the Power Ministry, said in a meet, "Showcasing Indian power sector" to potential investors at the India House here last evening.

Elaborating on investment opportunities, Panjiar said, "Today, with 100 per cent FDI allowed, opportunities exist across the entire value chain forming a large matrix of unexplored business options. On one hand, great potential lies in development of fuel options particularly coal washing and mining. The generation segment has become active with a thrust on ultra mega projects, non-mega projects and renovation and modernisation of existing units."

"Already, generation capacity of 39,000 MW entailing an investment of $43 billion is under execution," he said.

Panjiar said, "from being a predominantly coal-based generation (60 per cent share), the Indian electricity sector is today on the look out for more efficient, economical and environment-friendly fuels."

"Electricity utilities are actively exploring untapped potential of hydel sources and host of renewables including wind, solar, tidal and geo-thermal while pursuing development of new fuels such as natural gas, coal-bed methane, gas hydrates and bio-diesel."

Despite its current generation base of over 118,000 MW, India faces peak power shortage of 11.7 per cent at present.