India possesses the fifth largest power production capacity in the world, and contributes 4 per cent of the total global power production. With a total installed capacity of 152 giga watts (GW), as on September 2009, India is preceded by US, Japan, China and Russia. During the period 2008-2009, the average per capita consumption of electricity in the country is estimated to be 704 kilowatt hour (kWh). The Government of India has set up aspiring targets in the 11th plan for the Indian Power sector, which is backed by significant expansion and foreign investment plans. The government aims to provide over 1000 units of per capita electricity by year 2012 and for this purpose it has been estimated that need-based capacity addition of more than 100,000 mega watt (MW) would be essential. As a result of this huge requirement in the Indian power sector, there are a number of plans that have been proposed (related to Generation, Transmission and Distribution) and are currently under the review of the Power Ministry, India.
In a bid to provide "Power for All" by 2012, the Government of India plans to meet the country’s energy needs by adding 78,000 MW of installed generation capacity to the existing capacity by the end of 2012. The per capita energy consumption was at 733.54 kilowatt in the year 2008-2009. The industry is taking measures to provide the increasing requirements through renewable energy resources such as wind, and solar energy.
With the existing installed transmission capacity at 13 per cent of the total installed generation capacity, the power sector has been focusing closely on increasing the transmission capacity within the next 8-10 years.The Ministry of Power, India, plans to establish an integrated National Power Grid in the country by 2012 with close to 200,000 MW generation capacities and 37,700 MW of inter-regional power transfer capacity. Regarding the Power Distribution segment within the industry, the government is looking forward to de-link the State Electricity Boards into separate Generation, Transmission and Distribution units either by privatization or franchise route.