The government aims to add 6.5 gigawatts (GW) of thermal capacity in FY26, along with 2.2 GW of nuclear capacity and 3.9 GW of hydro capacity, according to the latest report by the Lok Sabha’s Standing Committee.
Accordig to the committee’s findings, as of January 31, only 1.4 GW of thermal power had been added against the FY25 target of 15.4 GW, while hydro capacity additions stood at just 40 megawatts (MW) compared to a target of 1.7 GW.
ALSO READSpot power prices jump 16% with summer onset
“This delay in commissioning of the thermal and hydro capacity would ultimately lead to cost escalation, wherein Subansiri Lower, Parbati-II, Pakal Dul Hydro Projects and Barh, Buxar, Ghatampur, North Karanpaura Thermal Power Projects, etc. are cases in point,” the committee said. “Therefore, the Committee recommends that the power ministry should coordinate with concerned States and Implementing Agencies in order to ensure that the hindrances, if any, are timely catered to, so that scheduled capacity addition targets are achieved in a time bound manner.”
In FY24, the country added just 5.4 GW of thermal capacity—against 14.7 GW target. Similarly, hydro capacity additions stood at a mere 60 MW, compared to the 2.8 GW target.
The ministry attributed these delays to a limited availability of EPC (engineering, procurement, and construction) contractors and Balance of Plant vendors, affecting the commissioning of thermal power projects.
“Genco’s are mainly going for EPC contracts. BHEL, L&T are the two bidders participating as EPC contractors. In the recent tenders, it is observed that L&T is not submitting its bids and utilities are receiving practically single bids only,” the ministry said.
Looking ahead, the government has set an target of adding 80 GW of additional thermal capacity by 2031-32 to keep pace with the country’s surging electricity demand. While India has committed to achieving 500 GW of renewable energy capacity by 2030, policymakers have reiterated that renewable energy alone cannot meet the rising power demand.
ALSO READConsumer durable firms see a bumper summer
With the onset of summer, power demand is expected to rise further, potentially surpassing the previous peak of 250 GW recorded in 2024.
India’s peak power demand, which has been growing at a compound annual growth rate (CAGR) of 6%, is now projected to accelerate to 7% CAGR over the next five years,
» Read More
