Rural Electrification Corporation (REC) continues to register higher growth and record performance in the period ending 2012-13.
A sum of Rs 40,183 crore was disbursed during the financial year 2012-13 as against Rs 30,593.30 crore in the previous year.
A record 20,623 MW was added to the installed capacity in 2012-13 against a capacity addition target of 17,956 MW. This is a growth of 15 per cent.
Addition came in from thermal stream which amounted to approximately 98% of total additions.
Renewable energy scenario in India has seen a very high growth during the last plan period.
It is significant to mention here that the 12th Plan target for capacity addition is 88,425 MW.
For this to be achieved, funds to the tune of Rs 14 lakh crore will be required.
India’s power scenario suffers from severe losses at the distribution level primarily due to theft and at the generation level the sector has struggled to meet the ever increasing demand.
Transitional Finance Mechanism (TFM) has been put in place by the government to ensure a turnaround for the sector.
- Financial restructuring plan (FRP)
- Revision of tariffs
- Release of subsidies only to State Governments to be later adjusted
- Audited Accounts regularisation
- Incentives by way of technology interventions
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Image credit: Sumita Saha