A cash-strapped Maharashtra State Electricity Board (MSEB) has announced plans for an additional 8 GW of new capacity over the next decade in order to avoid a growing power crisis. Already peaking at over 3 GW and expected rise to more than 7 GW over the coming five years, the shortfall has been precipitated by growing demand and a free supply to farmers. The state energy department has sought an annual allocation of at least Rs 5 billion ($125 million) for the next five years and private investment is being encouraged from the likes of Tata Power Company (TPC) and Reliance Energy Ltd (REL). TPC has already submitted a proposal to set up a 1 GW coal-fired project in coastal Raigad district, while REL has plans to invest in a 3 GW gas-fired project in Raigad district. However, MSEB is banking on the revival of the now closed Dabhol phase 1 at 658 MW and the completion of the 1444 MW phase 2. In addition, the 250 MW coal-fired Parali project is due for completion by November 2006.
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