Thermal power projects under various stages of construction across the country are facing cost escalation of 13 per cent due to delays in implementation.
Total capacity of these projects is pegged at 65,861.15 Mw. Original cost of these projects was estimated at Rs 4.46 trillion but due to time overruns, the cost has shot up to Rs 5.07 trillion. The time overrun for the projects ranges from four to 78 months.
Data by the Central Electricity Authority (CEA) shows that in the central sector, 18 projects predominantly the ones being executed by NTPC Ltd, are grappling with a combined time overrun of 519 months. In the private sector, projects proposed by Lanco Power, India Power, KVK Nilachal, Ind Barath and others are impacted by cost overruns.
Power capacity addition has been on a downtrend after 2015-16 when the country added 1746.1 Mw. In the last fiscal, thermal capacity addition slowed to 13440.5 Mw.
For 2017-18 too, the country is poised to fall short of its target of power 13171.5 Mw. At the end of December 2017, only 4,765 Mw fresh capacity has been added.
The annual report of the Union power ministry presents a depressing trend in power capacity addition in this fiscal, especially in the thermal segment.
Of the targeted addition of 11,366.15 Mw, only 4,300 Mw fresh capacity in thermal power was created by the end of December. In thermal power, performance of Central and state-owned utilities has been lacklustre. It was proposed to add 4,800 Mw in the central sector but actual achievement was only 910 Mw. Likewise, state utilities added 660 Mw against the intended capacity of 3,546.15 Mw.
Private power producers have fared better, inching close to the assigned target for the fiscal. At the end of December 2017, private thermal power units added 2,730 Mw compared to a targeted figure of 2,940 Mw.
Nuclear power has drawn a blank on capacity addition. Through this source, 500 Mw was to be added in FY18. Hydro power capacity addition has been tepid too, with only 465 Mw being added against a target of 1,305 Mw.
