Being the fifth largest around the world, India’s power sector is quite significant in the growth of country’s economy. Investing companies in India are highly dependant on power sector as this is one of the sectors that proffer huge investment prospective depending on the market size as well as the returns presented by the investment capital.
Almost 55% of power projects in India are based on coal that is considered the most commonly used fuel to produce energy. The other 45% is completed by gas, hydro, renewable resources, nuclear power and diesel. These figures are sourced by Government of India through the Ministry of Gas in order to educate the people of India on how the power and energy is produced in the country.
However, the Government’s promise of “power to all” by 2012 seems to be in a tiff, as to fulfill this promise there should be an increased 1,00,000 MW of energy production required along with tariff rationalization. This augmented production is only possible after the proper reformation of the power projects in India in conjunction with the greater involvement of private companies in every division of power sector.
With the increased demand of electricity and power in the different states of India, Government has now started emphasizing on reformation activities that include huge setups renewable sources power plants. Even more development can be seen in the hydro power sector with the increase of around 1% in the total production. However, gas plants are now on hold, as Government feared that due to shortage of gas supply can hamper the additional production plans through gas power projects in India.
Whatever, be the shares of thermal, hydro and gas power plants; the environmentalists have accentuated on the renewable sources as the main fuel for power projects in India. This is because renewable sources create less pollution and does not pose any threat to environment.
India’s need of power projects can be identified with the fact that population is increasing day by day leading to increased consumption of electricity and power. If to go with current status, power projects in India are fewer to generate the energy required to fulfill the needs of the people.
Power projects in India are working efficiently for the benefit of the country, but still there is long way to go. The Government should take proper measures to maintain the existing power plants along with the actions taken to develop new ones. The role of private companies is noteworthy here, as these companies are also working hard to set up new power plants that can produce high volumes of energy that can be available to the people at reduced tariff
Although, needs for electricity have been increasing with an alarming rate, it is also the duty of people living in India to not waste the electricity. We all know that our natural resources are diminishing very fast and little effort to save energy and electricity can contribute a lot.
Why India Need Power Projects?