I have some information on Power Generation though.
Government may fail to achieve target in power generation
The power sector is still struggling around the half-way mark of the ambitious target of 78,755 MW fixed for the 11th Five-Year Plan (2007-12), which was set to fulfil the UPA government's dream providing "power for all" by March 2012.
An acute shortage of coal and gas, environmental issues and the lack of funds for investing into new projects have been responsible for holding up the expansion plans in the power sector even as the demand has steadily been growing.
Given the slow pace of implementing new projects, the Planning Commission had in its midterm review slashed the target for the 11th Plan to 62,000 MW. However, the capacity addition the end of March this year was a mere 34,462 MW.
The government has now reduced its power capacity addition target for the 11th Plan to 50,000 MW but even this is unlikely to be met in the remaining months of the current financial year as each of the ultra mega power plants of 4,000 MW and above has run into fuel linkage problems.
The initiative of private sector companies - such as the Reliance Power and the Tatas - buy coalmines in Indonesia and Australia to source coal has also come a cropper as these countries have changed their pricing policy to jack up the price of the fuel. These projects do not appear viable at the moment due to the low tariffs fixed for the electricity they are expected to generate.
The shortage of natural gas is also posing a problem as the output from the giant KG basin eastern offshore gas field, operated by the Reliance Industries, has fallen short of its target. The failure of Coal India Ltd to move out huge stockpiles of coal at the pitheads of its mines is also affecting existing power generation capacity, which is adding to the woes of the consumers.
Land acquisition for the power plants another hurdle as the government has been taking its time for formulating the new policy.
The estimated potential of the hydropower in the country has been put at 1,50,000 MW but only 30,000 MW has been harnessed. Sufficient investments are not being made in this segment despite a liberal policy, which allows the sale at market rates of up to 40 per cent of the total energy produced to the commercial sector.
The sharp rise in the interest rate - which has crossed the 13 per cent-mark - has also forced many power companies to take a relook at their investment plans since this has impacted the profitability of the proposed projects. Economists attribute the hardening of interest rates to the hawkish monetary policy of the RBI, which has raised key interest rates 12 times this year to control inflation.
"The interest rates play a key role as power plants require huge investments. An investment of Rs 8 crore is required for generating 1 MW of power and delivering it to the consumer," a senior official working with BHEL explained.
Fresh investments in the country's power sector seem to be drying up, with no orders emanating from the private sector during the first half of the current financial year (ended September 30), making the public sector NTPC as the only company which has come out with an order for a major power project.
SENIOR officials point out that while the government is pinning high hopes on the private sector to meet a significant portion of the $ 1 trillion investment required to give a fillip to the country's sluggish infrastructure, the power sector seems to be in the doldrums at this point. This is giving rise to serious concerns as the GDP growth rate of 9 per cent for the economy would require a 15 per cent growth in the power sector, a senior official said.
According to sources in the industry, the government has dampened the spirits of prospective investors in the power sector by not clearing coal linkages for power plants, which are still stuck up over environmental issues.
I am giving the link to Volume 1 of 11th Plan.
India's 11th Five Year Plan 2007-12: Challenges and Constraints
Since year 2012 is coming soon, the 11th five year plan of India is coming to an end. A Lot has happened in this duration and a lot has not met the expectations. Can we learn about what was the proposed plan and how much we have tried to achieve? This way we will get to know where India is today in terms of different sectors.
ps: I love economics, which is why I'm starting this thread!
If anyone has information to different sites where we can learn about the planned information and how much we have achieved, please do share!