Demand grows, as projects are terminated
The termination of energy projects leads to shortage of supply while demand continues to grow, according to Anand S, engineering officer, Central Power Research Institute, Bangalore.
“Many times, these projects remain on paper; they never see the light of the day,” he said.
IndiaSpend had earlier reported how electrification does not necessarily mean electricity.
India is the world's third-largest consumer, following China and the US, but even with the per capita target of 1,000 kWh met in 2014-15, it is among the lowest in the world, Mint reported. China consumes four times as much power, and the developed nation average is 15 times as much.
Average escalation in cost: Rs 550 crore per project
“The past policies are unsustainable for our growing population. The lack of clarity, stable policies and professionalism, and political interference are major bottlenecks,” said Shankar Sharma, a power policy analyst.
Of the 1,200 power projects launched by the government over the past 40 years, 594 are under construction, including 111 projects that are running behind schedule with a cost overrun of Rs 61,694 crore.
The average cost escalation per project is Rs 550 crore.
Acquisition of land, eviction of people, shortage of manpower, improper management and delays in supplying raw materials are some of the primary reasons for delays, according to power ministry data.
There is a major communication gap between the government and people when it comes to executing major power projects, experts said.
