Question : DEFICIT IN ECONOMIC DEVELOPMENT



(a) whether power deficit is the main obstacle in the process of economic development of the country;

(b) if so, whether the country is facing serious fuel supply crisis in both coal and gas due to domestic supply constraints;

(c) if so, the details thereof;

(d) whether changes in law in foreign countries relating to export of coal to India has led to increase in fuel cost by 150% making coal projects competitive bidding unviable;

(e) if so, whether the Government plans to tap additional renewable energy resources to meet power deficit for maintaining the growth rate of the economy; and

(f) if so, the details thereof and if not, the reasons therefor?

Answer given by the minister


MINISTER OF STATE IN THE MINISTRY OF PLANNING, SCIENCE & TECHNOLOGY AND EARTH SCIENCES (DR. ASHWANI KUMAR)

(a): Yes Sir, power deficit is one of the obstacle in the process of economic development of the country. It limits the ability of the economy to grow. The electricity requirement in the country during 2011-12 was 936,568 million units (MU) against which the availability was 857,239 MU resulting in deficit of 79,329 MU which was 8.5%. Further, the peak demand in the country in the same period was 130,250 mega watt (MW) against which peak met was 115,847 MW resulting in peak deficit of 14,403 MW which was 11.1%.

(b): Yes Sir, the country is facing fuel supply shortage of both coal and gas, due to domestic supply constraints.

(c): The coal demand in the country during the year 2011-12 was 640 million tonnes against which the domestic coal production was 540 million tonnes and import was 90 million tonnes. Whereas, the gas demand in the country during the year 2011-12 was 194 million metric standard cubic meters per day (MMSCMD) against which the domestic gas production was 130.26 MMSCMD and import was 36.5 MMSCMD (LNG). This is one of the reasons that have affected the electricity generation of thermal power plants.

(d): The Government of Indonesia has made certain changes in basic pricing policies for the export of coal to other countries including India. The changes in policy have affected some power projects in India. With the increase in coal prices, developers have indicated difficulties in supplying electricity at the competitive bid tariff.

(e):Yes, the Government plans to tap additional renewable energy sources to meet power deficit for maintaining the growth rate of the economy.

(f): During 12th Plan a capacity addition of 30,000 MW of Grid connected renewable power is proposed of which 15,000 MW is envisaged to come from Wind Power, 10,000 MW from Solar capacity and 5,000 MW from other type of renewable sources.