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.