The government plans to produce 39,000 MW of electricity by 2030 against demand of 34,000 MW to fulfil its ambitious plan of taking power to all by 2021.
Plugging the energy gap requires
The government will not be able to fund this, which lends significant room for private-sector involvement.
The government's substantial spending for the power and energy sector, the power sector needs increased private participation, either from domestic or foreign sources.
The share of private-sector financing in power projects will increase to 58% by 2016.
Large independent power producer projects had a debt component of 60-70%, with the rest from equity financing.
A maximum of 50% of project financing over the medium to long term. It assume a 60% private-sector share over the medium term, this suggests that
Investing in energy capacity is to have a positive effect on growth. The
Between 2010 and 2013, only 50% of planned electricity generation was added to the grid.
Timely project implementation will be crucial for achieving the power generation targets.
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