Electricity production in India (excluding captive generation) stood at 876.4 terawatt-hour (TWh) in FY12, a growth of 8.1 per cent over the previous fiscal. Over FY06-12, the production has expanded at a compound annual growth rate (CAGR) of 6 per cent.
Growing population, increasing penetration and per-capita usage has further provided the impetus, in addition to the expansion in industrial activity, to boost electricity generation. The total demand for electricity is expected to expand at a CAGR of 7.6 per cent over FY07-22 to reach 1,915 TWh. The government has targeted capacity addition of 100,000 MW each under the 12th (2012-17) and 13th (2017-22) Five Year Plans in order to meet increasing power demand.
Power is one of the key sectors attracting foreign direct investment (FDI) inflows into India; inflows recorded a CAGR of 63 per cent during FY06-12.
The Government of India has allowed power companies to take recourse to external commercial borrowings (ECBs) to part finance their rupee debt. The withholding tax on ECBs has been reduced to 5 per cent from 20 per cent. The limit for tax-free bonds for the power sector has also been increased to US$ 2 billion from US$ 1 billion.
Click Here to Download Size: 1 mb