In a significant move to address the surging power demands of the nation, Union Minister for Power and New & Renewable Energy, RK Singh, convened a crucial interaction with industry stakeholders in New Delhi. The meeting focused on reviewing and expediting the addition of 80 gigawatts (GW) of thermal power capacity by 2031-32, outlining the government’s commitment to ensuring a steady and reliable power supply for India’s growing economy.
Minister Singh highlighted the unprecedented growth in power demand driven by the rapid expansion of the economy. He emphasised the need for 24×7 power availability and stressed that, to meet these requirements, a mix of energy sources, including coal-based thermal capacity, is essential. With 27 GW under construction and an initial plan to add 25 GW, Singh announced an ambitious decision to initiate work on at least 55 GW to 60 GW of thermal capacity to keep pace with the accelerating demand.
The projections outlined in the National Electricity Plan for 2022-32 indicate a necessity for 283 GW of coal and lignite-based installed capacity by 2031-32, compared to the current 214 GW. Minister Singh urged states possessing thermal capacity to prioritise maintenance, renovation, and modernisation efforts, emphasising that states actively maintaining their capacities will receive additional power allocations.
Singh also called upon the industry to plan for the addition of thermal capacity, noting that thermal energy remains indispensable until energy storage becomes cost-effective for round-the-clock supply through renewable energy. He encouraged the industry to view this as an opportunity for indigenous development and growth, stressing the importance of adding capacity to stay competitive.
Addressing concerns raised by EPC vendors such as GE & L&T regarding the bidding process, Minister Singh assured them that their concerns would be thoroughly examined. Other equipment suppliers voiced issues such as credit shortages in the market, bank guarantees, and qualifying requirements. The Minister urged vendors and contractors to submit their concerns and suggestions for collaborative problem-solving, emphasising the need for the industry to be proactive in ramping up manufacturing capacities.
Power Secretary Pankaj Agarwal supported Minister Singh’s statements, stating that thermal energy would remain relevant even in 2047. Agarwal highlighted the need for at least 80,000 MW of capacity addition by 2031-32 to meet base load requirements, especially during non-solar hours and in the face of unpredictable weather events. He called on the private sector to seize the opportunity, strengthen vendors, and proactively contribute to the nation’s power capacity.
